ZMZ concludes settlement agreement with bankruptcy creditors

Wednesday, 21 July 2010 14:01:40 (GMT+2)

Russia's Chelyabinsk Region Arbitration Court has approved a settlement agreement between Zlatoust Metallurgical Works (ZMZ) and its bankruptcy creditors.

According to ZMZ's statement, the settlement agreement was concluded for a period of ten years and provides for a three-year delay before the start of payments. ZMZ's total amount of accounts payable is about Ruble 11.9 billion (approx. $391 million).

The settlement agreement between ZMZ and its bankruptcy creditors, including TransCreditBank (21.2 percent), Commercial bank Petrocommerce (17.8 percent), Alfa-Bank (12.1 percent) and Sberbank (10.5 percent), was signed on July 2, 2010.

"In the current year, the plant's financial position is steadily improving: there are new contracts, ZMZ is gradually extending its product range and is developing new steels and alloys. Also, thanks to the trilateral agreement on strategic partnership reached between ZMZ, Chelyabinsk Metallurgical Plant, (a subsidiary of Russian mining and steel producing group Mechel), and the Chelyabinsk regional administration (August 2009), ZMZ is provided with the necessary raw materials and guaranteed sale of its finished products," reads ZMZ's statement.

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