October 8, 2012. ChTPZ Group is planning to have its debt payments restructured for the period of up to seven years, the company’s financial expert Valery Lukin, who is currently working on the restructuring, told Prime.

‘A restructuring process normally involves the prolongation of a credit period for five to seven years, but every creditor is focused on their own priorities in this process. The main task is to reach a compromise that suits everyone,’ Lukin said.

The company, which invested a lot of money in the construction of nationally important projects (Vysota 239 and Iron Ozone) in 2007, had to stop the construction for eighteen months due to recession, and now is the time to pay off most of the loans. This is why it was decided to have the debts restructured. Today, the level of acceptable risks is relatively high for the Russian banks, so they are quite willing to negotiate for short-term loans and less willing to talk about the long-term ones. Yet a state guarantee that offers compensation to the banks makes them feel more confident about their long-term borrowers, Lukin feels.

‘The difficulties the company is facing at the moment are purely technical in nature, while its economic performance indicators such as the production output, revenues, and profit are positive and keep growing,’ he said.

It is also worth noticing that the state is interested in ChTPZ feeling secure in the long-term, too.

‘A nicely performing enterprise is a source of income for the state. It’s only cynical,’ Lukin says.