Trading Companies

Stemcor Receives $1.15 Billion Loan

Written by Sandy Williams


Stemcor, a privately owned steel trading company hit hard by the global financial crisis, has secured a $1.15 billion syndicated loan to bolster trading activity that fell sharply after the company defaulted on an $850 million loan last year.

Stemcor received approval last month by the UK courts to restructure its billion dollar debt and borrow additional funds until December 2015.

Stemcor lenders ABN AMRO, HSBC, ING, Natixis and Societe Generale signed contracts to provide funding for a specified period and cannot withdraw it during that time. Stemcor continues to remain under pressure to sell iron ore assets in India to repay its debts.

“Thanks to the overwhelming support of our banks, we now have a strong platform from which we can increase our trading capability. Today represents a major turning point for Stemcor,” said Stemcor CEO Julian Verden. (Source: Reuters)

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