27 July 2009 - Gide Loyrette Nouel Moscow & London advise on Landmark Russian Restructuring:

The Moscow and London offices of Gide Loyrette Nouel have acted as Russian and English legal counsel to Mechel OAO (“Mechel”) on its successful refinancing of
USD 2.6 billion of credit facilities. This is the first successful public Russian corporate restructuring of credit facilities involving international syndicates of creditors since the global credit crisis began, and involved the refinancing of certain short term credit facilities with secured long term credit arrangements. Mechel is one of the leading Russian mining and metals companies, with its shares listed in Moscow (the Russian Trading System Stock Exchange) and on the New York Stock Exchange.

Mechel was advised by a cross office team comprising Moscow partner Grigory Marinichev and associates Konstantin Kochetkov, Mikhail Lisov and Dimitry Raev as to Russian law, and partner Michael Doran, senior associate Richard Pogrel and associates Nilang Desai and Manan Singh of the London office as to English law.

The refinancing was the result of negotiations with two syndicates of 27 international lenders in total, relating to acquisition debt incurred for the acquisition of Yakutugol Holding Company OAO and Elgaugol OAO in October 2007 and the purchase of the English company Oriel Resources Ltd. in April 2008.

London partner Michael Doran commented: "This is the first successful restructuring of internationally syndicated debt by a major Russian corporate since the global credit crisis began. Its completion will be looked upon favourably by market participants, in particular those other Russian companies currently in refinancing discussions with international banks. It is an important transaction in the Russian marketplace and we were delighted to represent Mechel."

Moscow partner Grigory Marinichev added: "This refinancing is a landmark transaction and is a clear sign of increased confidence in the Russian market. No doubt its successful completion will facilitate ongoing negotiations on a number of pending restructuring projects."

In a press release issued by Mechel⁽¹⁾, Mechel's CFO Stanislav Ploschenko commented: "Mechel has become the first Russian company which managed to refinance its significant credit facilities with foreign banks by means of long-term instruments and, moreover, it was done on acceptable and favorable terms in current market environment."


⁽¹⁾ Full Mechel press release:
http://www.mechel.com/news/article.wbp?article-id=A5A05E11-A472-4B42-9A52-10087ACFD55A