London-based Stemcor, the world's largest independent steel trader, has requested a 90-day standstill agreement on its $1.2 billion of loans so that the company can produce a restructuring plan, according to the Wall Street Journal. Stemcor is trying to turn its short-term debt into debt with longer-term maturities.
Stemcor initially secured a 30-day standstill agreement until June 7 when it failed to pay a loan of $850 million and it is now asking its lenders to give it a standstill agreement until September for loans totaling $1.2 billion, including the one-year $225 million loan raised by Stemcor's Asian unit Stemcor SEA Pte Ltd.