Mechel Has Refused The Moratorium On The Bankruptcy
Mechel has abandoned the moratorium on bankruptcy and intends to make deferred payment of dividends, according to the company's message.
"Mechel public joint-stock company... hereby declares its refusal to apply to Mechel PJSC the moratorium on the initiation of bankruptcy proceedings on applications submitted by creditors (hereinafter referred to as the moratorium), imposed based on a decree of the government of the Russian Federation ... and enters information about this in the unified Federal register of bankruptcy information, "the company said in a statement.
The representative of Mechel, in turn, confirmed that the company was released from the moratorium, due to which the procedures for repurchasing shares and paying dividends were suspended, and confirmed the company's intention to fulfill these obligations.
In early July, Mechel's shareholders approved the payment of dividends on preferred shares for 2019 in the amount of 3.48 rubles per share. However, the company then reported that the obligation to pay dividends, which should have been fulfilled before July 31, was not fulfilled in full for a total of 480 million 448 thousand 504.2 rubles. As follows from the message, Mechel used the right granted by the government to bankruptcy, and, accordingly, to pay dividends. As a representative of the company explained, Mechel intends to fulfill its obligations to pay dividends after the end of the moratorium.
Mechel group is a global mining and metallurgical company with about 20 industrial enterprises: producers of coal, iron ore, steel, rolled products, ferroalloys, heat, and electricity. In 2019, the company maintained coal production at 18.8 million tons, while steel output decreased by 7% to 3.6 million tons.