ESTAR has signed a consulting agreement with Binbank

Under an agreement for implementing a programme of restructuring the debts of, and of finding investors for the Group of Companies ESTAR, Binbank has attracted a pool of private investors to provide the Group with working capital financing and funding required for completion of investment projects of the Group. Binbank will also be an arranger of the refinancing of debt portfolio of the Group.

 Andrey Mishin, the President of Group of Companies ESTAR, commented that the financial state of the Group is similar to that of other metallurgical companies in Russia. “Yes, there are changes in accounts receivable and accounts payable structures going on. Customers significantly defer payments for the products shipped to them and accordingly we have had to defer payments for our raw materials, gas and power energy” says Andrey Mishin “but I consider as the main problem the material decrease in volume of production orders for domestic market which has had impact on production capacity use and employment of staff. On this matter we closely cooperate with the regional state administrations and trade union organizations in order to reduce social tension. In general Group of Companies ESTAR is operating in accordance with its approved 2009 budget”.