LONDON Aug 16 Stemcor, the world's largest
steel trader, will present a restructuring plan to its lenders
on August 28 in a bid to get it approved before a debt
standstill expires on September 16, people familiar with the
Like many steel companies, Stemcor has been hit hard by the
global financial crisis. It secured a 100-day standstill
agreement with its lenders in late June to stabilise the company
while a restructuring plan was developed.
The restructuring plan was initially outlined to Stemcor's
bank co-ordinating committee, which consists of top lenders
including ABN AMRO Bank, HSBC, ING, Natixis and Societe
Generale, on July 29th after an all-lender meeting on July 23.
As part of the restructuring plan, Stemcor is seeking to
sell its Indian iron ore assets through an international
India's Saraf family, which has a 23 percent stake in an
iron ore mine owned by Stemcor has the first option to buy out
the UK firm if it decides to sell its stake.
Privately-owned Stemcor, which is also the UK's fifth
biggest private company, had to put a standstill agreement in
place after failing to refinance a maturing $850 million,
364-day loan which was originally agreed in April 2012.
Under a standstill agreement, lenders agree not to ask for
repayment and work with the company to restructure the debt or
extend its maturity.
The standstill covers $1.2 billion of loans, which includes
the $850 million loan, a $225 million, 364-day loan that was
syndicated in Asia last October for Stemcor (S.E.A.) Pte Ltd and
Stemcor was formed in London in 1951 and had turnover of
more than 5 billion pounds in 2012. The majority of shares are
held by the Oppenheimer family, with the balance of shares held
by other directors and employees.
(Additional reporting by Sandra Tsui and Jacqueline Poh)