MOSCOW, Nov 16 (Reuters) - VTB, the Russian state-controlled bank, has agreed to join other creditors in restructuring the $9.6 billion debt of mining group Mechel , a source close to the bank said on Saturday, confirming media reports.
'We confirmed that we and other banks are ready to restructure,' the source told Reuters on condition of anonymity. VTB had been holding out over Mechel's bid to win a waiver of loan covenants and terms of a debt restructuring.
Separately, the central bank said that from Monday Mechel's bonds and shares would again be eligible as collateral pledged by banks in refinancing operations.
Shares in the coal-to-steel group slumped to an all-time low on Wednesday. Fears about its viability were fuelled on Thursday when the central bank ruled that its bonds were worthless as loan collateral.
(Reporting by Douglas Busvine; Editing by Jason Bush and Louise Ireland) Keywords: RUSSIA MECHEL/
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