Moscow exchange logged the record sharp fall in the Mechel stocks, one of the world’s leading steel and coal producers. The stock fall occurred unexpectedly for market insiders. So, securities’ value plummeted by 47.2% on Moscow exchange. Besides, the Mechel stocks sank by 40% at opening of a trading session on the New York Mercantile Exchange. By the close in Moscow, the Mechel trading volume had increased considerably and shares were trading at RUB 50.7 apiece. It is still difficult to account for this abrupt plunge. Meanwhile, the company’s representatives have not released any forecast or company news what could have exerted a strong influence on the stock value. A number of analysts assume that too high credit risks are to blame. According US GAAP standards as of March 31, the total debt of the global mining giant amounts to $9.3 billion, while the net debt without cash assets is equal to $9.2 billion. The heavily indebted Russian company has not commented on the state of affairs so far but it opts for the cause that the tumble in its stocks was purely speculative. An anonymous spokesman for the company stated that the talks with banks over a covenant vacation and debt restructuring are going on successfully and the company expects them to end by the end of November. There is nothing negative happening within the company. It is worthy of noting that OAO Mechel is the world-famous mining and metallurgical company. Its personnel comprise over 80,000 employees. The produce is supplied to Europe, Asia, Africa, Northern, and Southern Americas. The corporation produces coal, iron ore, nickel steel, rolled steel products, hardware, heat, and electric power. It should be reminded that recently, Mechel’s CEO Igor Zyuzin had an appointment with Russia’s Prime Minister Dmitry Medvedev.
