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Though some may have seen it coming for awhile, Russia’s Mechel (NYSE:MTL) is reportedly heading straight for bankruptcy, according to a report from Forbes. The miner’s stock dropped roughly 31 percent on the New York Stock Exchange on Monday to hit $1.05.
Though some may have seen it coming for awhile, Russia’s Mechel (NYSE:MTL) is reportedly heading straight for bankruptcy, according to a report from Forbes. The miner’s stock dropped roughly 31 percent on the New York Stock Exchange on Monday to hit $1.05.
As quoted in the publication:
Economic Minister Alexei Ulyukayev said Friday that the debt-ridden Mechel’s bankruptcy was now “inevitable”. Mechel is Russia’s leading coal producer.
Ulyukayev told reporters in Egypt that attempts to restructure Mechel’s $6 billion debt had failed. He said Mechel was unable to find a white-knight to buy the company. “Unfortunately, the recent developments clearly show that no other options but bankruptcy are left,” Ulyukayev said.