The GFG Alliance owned by commodities tycoon Sanjeev Gupta said that it was progressing with a major restructuring, and that will allow it to pay back creditors after its main lender Greensill Capital collapsed in March. They gave a statement that this in turn will allow GFG to refocus its business, protect jobs and develop further its remaining assets.
For its cash-starved web of businesses in steel, aluminium and energy, GFG is under pressure to find refinancing. This is after supply chain finance firm Greensill filed for insolvency. Gupta’s business said that it had agreed a framework with Greensill Bank’s administrators for positive direct engagement. And this is to achieve an amicable resolution. This huge announcement comes after GFG and Credit Suisse said about their standstill agreement on Australian steel and coal mining assets, that will allow the full refinancing of that business.
The Zurich-based bank had already disclosed some $2.3 billion worth of loans exposed to financial and litigation uncertainties within the funds, with some $1.2 billion of its assets related to GFG Alliance. GFG said that the developments helped to pave the way for a refinancing that will enable them to pay back creditors. It also added that it had released refinancing documents for its steel operations in continental Europe, and was also continuing the sales process for its UK aerospace and alloy business and would merge its steel operations in into the Romanian business. Since the UK launched an investigation into suspected fraud and money laundering, GFG has been under a cloud.
