A call to Zyuzin: almost the entire billionaire's stock of shares is encumbered under a personal loan

What risks faces the owner of Mechel.
03.12.2013
Forbes
Origin source
The Black Wednesday for Igor Zyuzin on November 13, 2013: the shares of his Mechel company tumbled by 41.35% in just two hours. That is the first such event in history, since even after Putin's promises "to call the doctor" the shares only 38% in a day. It happened on Tuesday, July 24, 2008. Shortly before that, Mechel had reached the maximum capitalization of $ 24 billion, and Zyuzin was on 12th place in Forbes ranking. His fortune was estimated at $ 13 billion.

While Zyuzin could easily take personal credit for hundreds of millions of dollars, putting the banks a tiny fraction of its shares "Mechel". Which he did. After the crisis, the situation has changed. Unlike most steel companies, "Mechel" was not able to get out, even with the support of the banks.

In July 2013 when the capitalization of "Mechel" was $ 1.22 billion, and of belonging to the "Mechel" Zyuzin 67.42% stake was laid more than 74%, accounting for 50.03% of all voting shares of the company. Given that the loan itself - it's only about $ 300 million.

The sharp drop in one-time "Mechel" quotations in mid-November, it would be easy to explain the result of margincall on the loan, which could occur due to a decrease in prices. But the Zyuzin this version did not comment on the request Forbes did not answer.

Today is finally the official information on the subject - "Mechel", being the issuer of the NYSE, said in an American Commission on Securities and Exchange Commission about the changes that have occurred since the major shareholder equity. As can be seen from the report, Zyuzin did get a margin call, but to sell the shares it did not come - he managed to increase the security for the loan. To do this, lay the businessman had 88.14% of its stake (almost 60% of all voting "Mechel" shares).

Today Zyuzin much at risk - the next margin call may be the last for him. The fact that almost all its shares today are pledged, in itself is not terrible - Zyuzin can still vote by them, and as soon as the capitalization of "Mechel" will begin to grow, the stock will be gradually freed from the pledge.
But in order to increase the capitalization, "Mechel" an urgent need to reach an agreement with creditors on debt restructuring of $ 9.5 billion. As reportedrecognition of the fact Zyuzin margin call will affect the further negotiations "Mechel" with the creditors, the company does not comment.