NEW YORK (TheStreet) -- Shares of Mechel OAO (MTL) are falling by 30.19% to $1.08 on heavy volume in mid-afternoon trading on Monday, as the Russia-based integrated mining and steel company may reportedly go bankrupt, according to Motley Fool.
Russian Economic Minister Alexei Ulyukayev said bankruptcy was "inevitable" for the company following the failure of talks regarding the restructuring of Mechel's $6 billion in debt, however, there is no guarantee that Mechel will end up going bankrupt, Motel Fool said.
Sanctions from the U.S., a decline in the ruble, increased debt, and a weak commodity environment all contributed to Mechel's precarious financial situation.
Mechel has been dealing with a volatile year. Last October the company was warned by the NYSE that its American Depository Receipts were no longer in agreement with the listing norms, however earlier this month the company announced that its ADRs are in agreement with listing norms, Zacks Equity Research reported.
In February, Mechel sold several mining sites and processing plants in West Virginia for $5 million to the family of businessman Jim Justice, Bloomberg reported. Mechel is in line to receive royalty payments of 12.5% of any future sale of Bluestone Resources within five years, and 10% within the following five years.MTL data by YCharts