LONDON Stemcor Holdings
Ltd., the worlds largest steel trader, plans to divest
parts of its business in a wider restructuring process
implemented by new chief executive officer Julian Verden,
sources close to the company told AMM sister
publication Steel First.
The privately owned steel trader
is considering selling its 4-million-tonne iron ore pellet
plant in eastern India, Steel First has been told.
The plant was slated to start
commissioning in 2011, but that has been delayed by regulatory
In addition to targeting
underperforming assets, Stemcor is also looking more profitable
parts of its business for potential divestment, Steel
First has been told.
A spokesman for the company
declined to comment on any details of the restructuring.
Stemcor has been looking to
arrange a standstill agreement on $1.2 billion in loans,
Steel First reported last week. Such an agreement
would allow the trading house to develop a repayment proposal
for two revolving credit facilities, a $225-million loan from
Asian banks and an $850-million loan from European lenders.
The trading houses banks
have chosen New York-based PriceWaterhouseCoopers LLP to advise
them on the request.
Fellow London-based commodities
trader Balli Group Plc went into administration last month (
amm.com, April 2). Sources said that the collapse
of the prominent steel, nonferrous and chemicals trader,
coupled with poor market sentiment, has made banks more wary
about lending to trading houses.
A version of this article
was first published by AMM sister publication Steel