Stemcor Said to Request Extra Time for Debt Restructuring TalksStephen Morris
Stemcor Holdings Ltd. is seeking an extra three months to agree terms with lenders to restructure about $1.2 billion of debt, according to a person with knowledge of the matter.
The steel trader’s current standstill pact expires Sept. 16, said the person, who asked not to be identified because the negotiations are private. The standstill, under which lenders agree not to demand repayment of the loan for a certain period, was put in place in June to allow the company time to devise a restructuring plan.
Stemcor failed to repay an $850 million credit line earlier this year amid falling sales and lower demand for steel. The London-based company appointed Zolfo Cooper LLP’s Simon Freakley as chief restructuring officer and hired Goldman Sachs Group Inc. to sell iron ore assets in India.
The trading company met with lenders led by ABN Amro Bank NV, HSBC Holdings Plc, ING Groep NV, Natixis and Societe Generale SA on Aug. 28.
Michael Broom, Stemcor’s chief financial officer, didn’t return a telephone call and an e-mail seeking comment on the extension request.