Stegra Lenders Pick Adviser as Steel Firm Faces Cash Crunch (1)

A group of lenders to Swedish steel start-up Stegra AB tapped Houlihan Lokey Inc. to advise it as the company faces a funding gap, according to people familiar with the matter.

Stegra has borrowed heavily to start an operation producing steel without the carbon emissions released by traditional plants. It received commitments for credit lines of over €4 billion ($4.7 billion) in recent years, split into €3.5 billion senior loans and up to €600 million junior debt, according to previous press releases by the company.

A representative for Houlihan Lokey declined to comment. A spokesperson for Stegra didn’t immediately respond ...