It missed repayments on its debt pile after buying an Indian iron ore mine as the market froze following the financial crash. In 2013 PwC was appointed by Stemcor’s lenders to restructure its borrowing, agreeing a deal in March last year.
That Indian iron ore mine now being worth very much less than it was.
But Stemcor, eh?
Stemcor, which was once controlled by the Oppenheimer family – which includes Margaret Hodge, former chairman of the Public Accounts Committee – ran into trouble in the wake of the financial crisis.
Amusingly, the one and only name we have of someone who used the Liechtenstein Disclosure Facility is one Margaret, Lady Hodge. And it seems to be turning out that she needn’t have bothered.
The agreement, which has High Court backing, means the creditors have taken a $1.5bn haircut, with their original exposure of $3.1bn being reduced to closer to $1.6bn following a debt for equity swap.
That equity now being worth very much less. Couldn’t happen to a nicer group of shareholders.