MOSCOW, August 24 (RAPSI) – The Moscow Commercial Court has approved an amicable agreement in a lawsuit filed by VTB Factoring, a subsidiary of VTB Bank, to collect 954.3 million rubles ($14mln) in debt from Mechel subsidiaries, Chelyabinsk Metallurgical Plant and Mechel Service, reads a court statement.

The Moscow Commercial Court ruled on February 3, 2105 that 954.3 million rubles ($14mln) be collected from Mechel’s subsidiaries, including 867.69 million rubles from both and 86.58 million rubles from Chelyabinsk Metallurgical Plant. On April 29, a court of appeals upheld the lower court’s ruling.

An attorney for VTB Factoring said Mechel Service failed to honor an agreement they signed in June 2013. The Chelyabinsk Metallurgical Plant was a guarantor in Mechel Service’s loan agreement with VTB.

As of June 15, 2015, Mechel’s debts were estimated at $6.77 billion. The company has been negotiating the restructuring of its debts since early 2014.

Mechel is a leading global mining and steel company and currently the most debt-laden in the sector. It was established in 2003 and comprises over 20 companies that produce coal, iron ore, steel, rolled products, ferroalloys, heat and electricity.