Mechel Announces That It Is in Discussions With Its Lenders

Press Releases

Mechel Announces That It Is in Discussions With Its Lenders

Moscow, Russia – March 29, 2012 – Mechel OAO (NYSE: MTL), one of the leading Russian mining and metals companies, announces that it commenced discussions with its lenders seeking waivers and amendments to certain of its credit facilities.

As a result of prevailing market conditions and a corresponding decline in market prices for its products, it expects to breach certain financial covenants in certain of its credit facilities for the year ended December 31, 2011.

Mechel has hired financial and other advisors and is currently in discussions with its lenders to seek relevant waivers and amendments of these credit facilities. Although Mechel is confident about the positive outcome of these discussions, no assurance can be given regarding whether, or on what terms, it will be able to secure such waivers and amendments.

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Mechel OAO
Ekaterina Videman
Phone: + 7 495 221-88-88
ekaterina.videman@mechel.com

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Mechel is one of the leading Russian companies. Its business includes four segments: mining, steel, ferroalloy and power. Mechel unites producers of coal, iron ore concentrate, nickel, ferrochrome, ferrosilicon, steel, rolled products, hardware, heat and electric power. Mechel products are marketed domestically and internationally.

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Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.

 

29.03.2012