Hopefully we can start to focus on maximizing the assets and put debt issue behind us. Look for more production based news like the huge contract to supply Russian Railways .
No, just being used as collateral. Read the plan, looks like Mechel is ready to focus on business as debt distraction will be resolved.
they probably had little choice in debt currency conversion as a deal needed to get done. they can hedge the currency out till 2020 to protect against a crazy strong ruble. I just think Putin wants Russian co to use Rubles and carry Ruble debt and get off the dollar standard.
Based upon that scenario a company like MTL that has hard assets, could thrive as hard assets boom and they pay back their debt with cheap money.
Looks like they are trying to cover, dump price in the AM then buy blocks of 10k all day long, news of Sberbank deal must be the catalyst to close out the short positions.
sanctions set to expire in June 2016, Germany and France have already stated that they wont be in favor of extending them.
Looks like 5.5 mil still short after 1 for 2 exchange to ADR representation. Thats alot of rally fuel when avg volume is 100k shares. Once traders smell shorts blood they could run it to 5 in a day.
No sweat, preferreds are a by-product of the common,, They could easy open at .50 or trade there on 200k volume. Once deal is finalized they both trade much higher. Although common will get more action as there is still 5.5 mil shares short.
The best is yet to come. Looks like a National cry to rally around Mechel and to not only survive but thrive in this global commodity slump. The only thing holding the stock back is agreement with Sberbank which is feeling national pressure to keep Mechels employees working. Once we get concrete agreement which I believe will push debt out to 2023 this could triple.