Sanjeb Gupta’s GFG Alliance signs debt agreement with Credit Suisse

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File photo: Sanjeev Gupta of Liberty Steel smiles outside the company’s Liberty Steel processing plant in Darzel, Scotland, England on April 8, 2016. REUTERS / Russell Cheyne

10 October 2021

London (Reuters) – The GFG Alliance said on Sunday it has signed a debt restructuring deal with Credit Suisse over Australia’s steel and coal assets and plans to inject £ 50million ($ 68million) in restarting the Rosalam electric oven. Announced it was done. UK.

Owned by commodities mogul Sanjeev Gupta, GFG struggles to refinance its network of underfunded steel, aluminum and energy companies after supply chain finance firm Greensill Capital filed for bankruptcy in March.

According to a statement from GFG, the debt restructuring of Australian assets will allow GFG to make “substantial upfront payments” to Green Sylbank and Credit Suisse, with the remainder being paid in installments until the new due date of June 2023.

Zurich-based Credit Suisse previously disclosed about $ 2.3 billion in loans exposed to financial and legal uncertainty within its Greensill-linked supply chain finance fund, and about $ 1.2 billion. billion of its assets. The dollar was linked to the GFG.

Production will begin in October, following a cash injection into British steel company Liberty Steel, with plans to reach 50,000 tonnes per month, the statement said.

Jeffrey S. Stein, director of restructuring, said in a statement that new European lenders were interested in refinancing GFG’s steel assets.

In Europe, GFG filed a lawsuit against private equity firm AIP, claiming it controlled GFG’s smelter in Dunkirk, Europe’s largest primary aluminum producer.

($ 1 = 0.7332 pounds)

(Report by Zandi Shabalala; edited by Jan Harvey)

Sanjeb Gupta’s GFG Alliance signs debt agreement with Credit Suisse

Source link Sanjeb Gupta’s GFG Alliance signs debt agreement with Credit Suisse


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