MOSCOW, September 15 (RAPSI) – Mechel has said in the Moscow Commercial Court that it paid about 730 million rubles ($10.7mn) of the principal debt to RPFB Project Finance, which filed a lawsuit to have the mining and steel company declared bankrupt, RAPSI reported from the court on Tuesday.

RPFB Project Finance, an independent investment banking firm focused on Russia and the CIS, has reaffirmed the receipt of the money, which means that it must withdraw its lawsuit. However, Mechel has not yet repaid interest debt to the banking firm.

The Moscow Commercial Court analyzed the reasons behind the lawsuit filed by RPFB and the introduction of an observation procedure at Mechel.

RPFB filed its lawsuit on August 12. On August 17, the court opened bankruptcy proceedings against Mechel. The court’s previous ruling to recover over 752 million rubles ($11mn) from Mechel to repay the debt owed to RPFB became effective in July. The money was due under a contract on organizing financing consultations by Vnesheconombank (VEB) for Mechel projects.

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 product, ferroalloys, heat and electricity.