Liberty Steel confirms talks in Dubai with Credit Suisse, a major creditor.
The reorganization of steelmaker Sanjeev Gupta’s business, which lost millions in the collapse of financing company Greensill, should save the steel business and refinance Liberty Steel’s UK operations.
With that, Gupta would have ensured the survival of his concern with three thousand employees. The details of the agreement were still to be worked out.
Jobs at risk
Gupta will sell a factory in Stocksbridge, South Yorkshire, in addition to associated factories in the West Midlands. He could then use the proceeds to refinance a nearby factory in Rotherham. 1300 people work there together.
Gupta leads a wider group of companies, the GFG Alliance, which employs approximately 35,000 people in Europe, Asia, the US and Australia.
Workers’ representatives speak of ‘significant’ uncertainty about job retention in the factories.
Liberty has been in trouble since March following the collapse of its main lender, Greensill Capital. Since then, Credit Suisse has been claiming money. The disclosure of a months-long investigation into fraud and money laundering at Greensill and Gupta as an entrepreneur did the group no good either. Many Greensill loans turned out to be weak.
Credit Suisse was one of Greensill’s largest backers and is now taking legal action to get its money back from Gupta companies in the UK and Australia everywhere.
Credit Suisse has sought to recover $ 10 billion from several companies associated with Greensill.
‘British Liberty Steel split up after Greensill drama’ | Financial
Source link ‘British Liberty Steel split up after Greensill drama’ | Financial