You're reading: Ostchem in talks with Gazprombank to settle debt of $842.5 million

Ostchem Holding, owned by Dmytro Firtash, is in talks with Russia's Gazprombank on the repayment of a $842.5 million debt, according to the press service of the company.

“In connection with the application of the Gazprombank corporate communications department dated Dec. 15, 2014, concerning Ostchem’s obligations to the bank, the press service of Ostchem informs that Ostchem and Gazprombank are currently in talks to settle this issue,” reads the report.

As reported, Russia’s Gazprombank demanded Ostchem repay a loan of $842.5 million.

If the holding does not repay the loan and the interest accrued by Dec. 30, 2014, the bank will require the guarantors to repay the loan (the four chemical plants of Ostchem) and apply foreclosure over 5.679 billion cubic meters of gas being stored in Ukraine’s underground gas storage facilities.