Russian coal and steel group OAO Mechel (MTL) Wednesday said it won't be able to survive as a going concern unless its creditors agree to restructure their loans.

"There is substantial doubt about our ability to continue as a going concern," Mechel said in its 20-F filing to the Securities and Exchange Commission for 2008.

Mechel was left with $5.16 billion in short-term debt at the end of 2008, after the company breached the covenants on $4.23 billion of longer-term loans and was forced to acknowledge that it may have to repay these debts prematurely.

"We don't have the ability to repay without refinancing or restructuring, and our ability to do so is dependent upon continued negotiation with our banks," Mechel said in its filing.

If it fails to reach an agreement with the banks, then Mechel said that it "could potentially be forced to seek relief under applicable bankruptcy or insolvency procedures."

Demand for coal and steel collapsed in the last three months of the year, and the company made a loss before depreciation, interest, taxes and amortization of $817.3 million for that period.

Company Web site: www.mechel.com

-By Will Bland, Dow Jones Newswires; +7 495 937 8445; william.bland@dowjones.com