FBK Legal lawyers accomplished a project on support in disposal of Mechel's assets
Corporate Practice lawyers of FBK Legal have successfully accomplished a project on due diligence and subsequent disposal of Russia’s largest coal field Elginskoye.
The project included analysis of rights to over a thousand property items, hundreds of forest and land plots, intellectual property, verification of the licenses, permissions to production facilities, compliance with construction requirements and stipulations in the area of railroad transportation, assessment of legal risks and pending disputes of the entities, assessment of implications of regulatory authorities’ directions, terms of business contracts and credit risks, review of the entities’ internal documentation and assessment of anti-trust risks, observance of rights of the workers in coal mining sector.
As explained by Elena Bokareva, the manager of the project, the deal was carried out as part of a large-scale restructuring of the debt of PAO Mechel, the field owner, owed to Russia’s largest banks, including Gazprombank. Eventually, JSC Gazprombank has become an owner of a 49-percent interest in three companies which anticipate continuing the development of the Elginskoye field.
Elena Bokareva went on to say, “The parties to the deal believe the closing of this deal will help to alleviate Mechel’s debt burden, to further develop the Elginskoye coal field, a vitally important facility for the sector, to boost growth of the country’s economy.”
The Elginskoye Coal Field is Russia’s largest and one of the world’s largest hard coking coal field, located in South Yakutia. The coal reserves amount to 2,2 billion tonnes as per JORC standards.
The project included analysis of rights to over a thousand property items, hundreds of forest and land plots, intellectual property, verification of the licenses, permissions to production facilities, compliance with construction requirements and stipulations in the area of railroad transportation, assessment of legal risks and pending disputes of the entities, assessment of implications of regulatory authorities’ directions, terms of business contracts and credit risks, review of the entities’ internal documentation and assessment of anti-trust risks, observance of rights of the workers in coal mining sector.
As explained by Elena Bokareva, the manager of the project, the deal was carried out as part of a large-scale restructuring of the debt of PAO Mechel, the field owner, owed to Russia’s largest banks, including Gazprombank. Eventually, JSC Gazprombank has become an owner of a 49-percent interest in three companies which anticipate continuing the development of the Elginskoye field.
Elena Bokareva went on to say, “The parties to the deal believe the closing of this deal will help to alleviate Mechel’s debt burden, to further develop the Elginskoye coal field, a vitally important facility for the sector, to boost growth of the country’s economy.”
The Elginskoye Coal Field is Russia’s largest and one of the world’s largest hard coking coal field, located in South Yakutia. The coal reserves amount to 2,2 billion tonnes as per JORC standards.
