ALRUD Law firm acted as the legal advisor for a leading Russian mining and metals company Mechel PAO in offering a major Russian bank the option to purchase 49% share in the Elga coking coal deposit development project for 34.3 billion rubles.
According to the agreement, Mechel is due to sell to a major Russian bank 49% of shares in Elgaugol OOO, the project operator company and owner of its subsoil license, 49% of shares in Elga-Doroga OOO which owns the Ulak-Elga railroad, and 49% of shares in Mecheltrans-East OOO which is the railroad’s transport operator. The cash acquired through this deal will be used to repay Mechel’s debt to two Russian banks. Partial debt repayment is a condition for restructuring of Mechel’s debt to a Russian bank.
Alexander Zharskiy and Andrey Zharskiy (Partners), Oleg Ezhov (Senior Associate) and Sergey Khanaev (Associate) and other members of the Corporate practice team took part in this project.