Britain's Stemcor agrees deal with buyout firm Apollo, other creditors

Debt-laden steel trader Stemcor, one of Britain's largest private companies, has agreed a deal with U.S. distressed investment fund Apollo (APO.N) and with its other creditors which "secures its future", it said on Monday.

According to an industry source, Apollo has an 'agreement in principal' to swap its debt for equity in Stemcor, giving it a majority stake. Stemcor's other creditors have also agreed a debt for equity swap and will run the firm alongside Apollo.

"Stemcor has agreed a deal with Apollo and with its lenders which secures the future of the core global business and provides us with a strong balance sheet with which to grow and develop the group," a Stemcor spokesman said.