Lenders to London-based Stemcor, the world's largest independent steel trader, have appointed PricewaterhouseCoopers (PwC) to assess Stemcor's proposal for a standstill agreement on $850 million of loans, according to Reuters.
After failing to refinance its $850 million revolving credit facility that was due to mature recently, Stemcor asked for a standstill agreement from its lenders. Under a standstill agreement, lenders agree not to ask for repayment and help the company to restructure its debts or extend the maturity.
Reuters said Stemcor is asking its lenders "to keep the loans in place until it is able to repay them in the next couple of years by accelerating a restructuring program and selling off units".
For 2012, Stemcor announced turnover of over £5 billion. The company secured the $850 million loan in April 2012.