OREANDA-NEWS. State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’ and Korean company POSCO signed a Memorandum of Intent in the city of Khabarovsk as part of the project on the further development of OJSC Amurmetall.

Vnesheconombank in cooperation with a major steel-making company POSCO are to prepare programs of short and long-term development of OJSC Amurmetall to be considered by creditors. The programs are designed to secure efficient corporate governance, profitable operation and further development of the steel-making production facility. In the future, prepared programs including those agreed upon with OJSC Amurmetall’s creditors could form the basis for restructuring the current debt and concluding an amicable settlement agreement.

At a general meeting of OJSC Amurmetall’s creditors held on August 27.08.2013 a decision was taken by a majority of votes to start bankruptcy proceedings. The proceedings are to ultimately result in a sale of the production facility’s assets by tender. In the course of voting Vnesheconombank spoke out for introducing a bankruptcy administration procedure (in order to retain and develop the sole electric steel-making plant in the Far East).

POSCO is the largest multinational steel-making company. In 2010-2012 it was the leader in World Steel Dynamics rating of the world’s most competitive steel-making companies. It is highly experienced in managing steel-making companies in 20 countries in the world as well as in implementing projects on increasing efficiency of steel-making companies’ operation among other things by way of reducing operating costs.