10 April 2015
Metinvest Group is rigorously fulfilling its obligations to customers in domestic and export markets, is continuing to accept orders and is shipping products as usual. The Company is negotiating with bondholders to defer principal repayments; negotiations with PXF creditors are also underway.
Metinvest Group’s enterprises are operating as usual. The capacity utilization of the Group’s Mariupol plants (Ilyich Iron & Steel Works of Mariupol and Azovstal) is 75-80%, while Zaporizhstal is operating at almost 100% capacity. In April, Iliych Iron & Steel Works of Mariupol and Azovstal plan to produce over 530,000 tons of steel. Thanks to decreased tensions and the ongoing ceasefire, production is resuming at Yenakieeve Iron and Steel Works and its branch in Makiivka. Yenakiieve Iron & Steel Works’ steelmaking facility was relaunched at the end of March, and today its rolling mills have already resumed operations. In April, the enterprise plans to produce 200,000 tons of steel.
Taking into consideration the turbulence in the Ukrainian economy and global pressure on prices, Metinvest, like many other Ukrainian companies, is seeking new terms and conditions for their debt facilities.
The Group has launched three offers to the holders of its bonds maturing in 2015-2018 to defer principal repayments. Currently, Metinvest is in default of its obligations on a total sum of $113 million, which is 3.5% of total leverage and is negotiating a broad restructuring of the Group’s debts.
The company is continuing to fulfill its commitments to its suppliers and contractors, and pay salaries and taxes to budgets at different levels of government on time.
Metinvest remains committed to informing all the Group’s stakeholders about relevant developments.