London-based
Stemcor, the world's largest independent steel trader, has confirmed that a binding 100-day standstill agreement is now in place with its lenders. The trader announced that the agreement provides it with stability while a restructuring plan is developed.
According to
Stemcor's statement, the company traded profitably during the first five months of the current year, margins are improving and the forward order book remains strong. In January this year, the company launched a process to significantly reduce its dependence on unsecured credit facilities in favor of traditional transactional finance.
As SteelOrbis previously reported, Stemcor requested a standstill agreement when it failed to pay a loan of $850 million due in May.