ALRUD Law firm acted as the legal advisor for a leading Russian mining and metals company Mechel PAO in offering Gazprombank AO 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 Gazprombank 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 Sberbank PAO and Sberbank Leasing AO. Partial debt repayment is a condition for restructuring of Mechel’s debt to Sberbank PAO.
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.