Clock Runs Out on Severstal Deadline as Citi Blocks Payment
- Firm says it’s seeking to resolve issue as soon as possible
- Citigroup said to request company get OFAC permission to pay
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Russian steelmaker Severstal appears to have missed a Wednesday deadline to make good on a $12.6 million interest payment to bondholders.
The money was originally due to creditors by March 16, but paying and transfer agent Citigroup Inc. wouldn’t remit the cash without the company receiving express permission from the U.S. Treasury. With a five-day grace period now expired, there’s been no sign that the payment has been passed on.