ALRUD Law Firm advised Mechel Group on the sale of 51% of the Elga coal project

ALRUD Law Firm advised Mechel Group on the sale of 51% of the Elga coal project

22 April 2020

ALRUD experts successfully represented the Mechel Group in the sale of its 51% participatory interest in the companies which operate the Elga coalfield project. Elga coalfield owns one of the world’s largest deposits of high-quality coking coal. Its estimated reserves are approx. 2.2 billion tons.

The buyer of the assets is A-Property; the total value of the deal is 89 billion RUB.

The transaction had a complex structure, as it involved a simultaneous sale of participatory interests in three Russian companies, restructuring of the companies’ existing indebtedness to the major creditors: top Russian banks – Gazprombank, VTB and VEB.RF, and discharge of existing encumbrances over the companies’ assets and participatory interests.

ALRUD’s team was headed by partners Andrey Zharskiy (Head of Natural Resources, Energy and Infrastructure) and Alexander Zharskiy (Head of Corporate / M&A) and was supported by counsel Oleg Ezhov, associates Kristina Akalovich, Anna Derbak and Irina Cherdintseva.

We use cookies to offer better performance of the website and fulfill some other purposes specified in the Privacy Policy. By way of ticking the box you provide your consent to use of cookies. Otherwise, we will only use technical cookies, which are necessary for proper functioning of the website.
Accept