MOSCOW, December 4 (RAPSI) – Troubled Russian metallurgy giant Mechel has settled the 172 mln ruble ($3 mln) debt with Sberbank, the company rep said during the Thursday hearing at Moscow Commercial Court.

In November, Mechel stated that it paid out the 1,5 billion ruble interest rate to Sberbank, and thus considers legal recourse over unpaid dues void.

Mechel announced on May 13 that its coal production in the first quarter decreased 13% year on year, to 5.565 million metric tons, and that its steel output fell 21% to 1.03 million metric tons. As for February 2014, Mechel’s net debt amounted to over $8 billion. Its net loss for the first nine months of 2013, calculated under US GAAP, reached $2.2 billion.

In early October, Mechel ceased paying off its debts, after which VTB and Sberbank turned to court.