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. Last Updated: 07/27/2016

Usmanov Buys Half of Maxi-Group

Billionaire Alisher Usmanov has bought half of scrap-metal processor Maxi-Group, injecting capital into the debt-laden company.

Usmanov's closely held company Gallagher Holdings, registered in Cyprus, agreed to buy the stake Friday, Maxi-Group spokesman Alexander Popov said.

Maxi-Group has 38 billion rubles ($1.6 billion) of debt that it has been unable to refinance since a global credit crunch prevented some Russian banks from issuing new loans. The company's owner Nikolai Maximov sent an open letter to President Vladimir Putin seeking help, according to its web site.

The group makes 2 million tons of steel annually and had planned to expand output 10-fold by 2012 with five new plants.

Usmanov's offer beat those of Severstal and pipe maker TMK.