Mechel’s subsidiary Chelyabinsk Metallurgical Plant appeals $9.3 mln penalty
MOSCOW, October 15 (RAPSI) - Chelyabinsk Metallurgical Plant has appealed against a lower court's ruling ordering it to pay 384 million rubles ($9.3 million) to Mikhailovsky Iron Ore Refinery (Metalloinvest group), RAPSI learnt on Wednesday in the Ninth Commercial Court of Appeal.
During a lower instance court hearing, a representative of the Mikhailovsky Iron Ore Refinery noted that the refinery supplied its products to the Chelyabinsk Iron and Steel Works under an agreement; however, the defendant did not completely fulfill its payment obligations. In their turn, attorneys of the Chelyabinsk Iron and Steel Works did not deny the debt but cited a difficult financial situation, general decline in production and falling prices of metal products. Additionally, the lawyers stressed that the Chelyabinsk Iron and Steel Works was doing its best to repay the debt.
They also appealed for reduction of the penalty.
Chelyabinsk Iron and Steel Works produces a wide range of metal products. Its net loss increased 25.5 times over 2013 and reached 11.1 bn rubles ($270.5 mn). The company did not provide the reasons for its negative financial indicators.
Metalloinvest is a world leader in iron ore raw materials and direct reduced iron production. It operates the Mikhailovsky Iron Ore Refinery, the Lebedinsky Iron Ore Refinery, the Oskolsky Electrometallurgical Works, and Ural Steel. Metalloinvest is 100% controlled by USM Holdings, where Alisher Usmanov is a major beneficiary (48%). Other USM Holdings shareholders include companies of Vladimir Skoch and Farhad Moshiri.