Gazprom and SIBUR coordinate restructuring debts

Gazprom CEO Alexey Miller held a meeting with president of theSiberian-Ural Petrochemical and Gas Company (SIBUR) Dmitry Mazepin andchairman of SIBUR's board of directors Alexander Ryazanov, who was also thedeputy CEO of Gazprom, the press service of the gas holding reported.After the meeting, Miller signed an order on restoring the currentcreditworthiness and stabilizing production activities of SIBUR. Thisdocument adopted the following conditions for restructuring. The debt ofSIBUR to Gazprom and its affiliates, including fines and sanctions,amounted to RUR25.7bn (about $814.04m) as of June 1, 2002. The term of itsrestructuring is eight years. The interest charged for this debt, is 11.5percent per year. The order also determines the conditions forrestructuring the company's debt to commercial banks.Additionally, SIBUR is suggested to elaborate on a five-year business planjointly with an independent consultant. This business plan will beintroduced to Gazprom's executive board.A number of Gazprom's departments were assigned to organize the supply ofhydrocarbon raw materials to SIBUR at existing prices..

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