Friday, January 16, 2009

MMK Facing Law Suit For Unpaid Coking Coal

Russian steelmaker MMK said on Friday it is facing a 1 billion rouble ($31.05 million) lawsuit from Mechel over debts for coking coal delivered last year.

According to MMK's spokeswoman Yelena Azovtseva a preliminary hearing on the matter was held yesterday in Chelyabinsk,

"We do not refuse (to pay) the obligations and have previously proposed to Mechel a number of ways to pay off the debt," Ms Azovtseva said.

She added that Mechel had refused to revise coal prices in talks last autumn and MMK had stopped accepting supplies from Russia's largest coking coal producer several months ago.

The company said in December that its customers had racked up $823.5 million in unpaid bills.

Source: Reuters

Mechel declined to comment on the matter.

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