Liberty Steel agrees to debt restructuring deal | Jobi Cool

LONDON, Nov 15 (Reuters) – Liberty Steel group owned by commodities tycoon Sanjeev Gupta has reached an agreement to restructure much of its debt for global operations, it said on Tuesday, while negotiations continue over the debt of European companies.

The Gupta family conglomerate, GFG Alliance, has been struggling to refinance its cash-starved web of steel, aluminum and energy businesses after supply chain finance firm Greensill filed for bankruptcy in March last year.

Liberty said in a statement that it had signed a term sheet subject to agreement on a principal debt restructuring agreement with the parties responsible for major creditors Greensill Capital UK Ltd, Greensill Bank AG and Credit Suisse Asset Management ( CSGN.S ).

The steelmaker, which has operations in Britain, Europe, the US, Australia and Asia, did not say how much debt was involved in the restructuring.

The company said in June that it had reached a standstill agreement with its largest creditor, Greensill Bank, on credit facilities for its European business.

In a statement on Tuesday, Liberty said it was negotiating similar terms for debt restructuring for European companies.

Germany-based Greensill Bank is a subsidiary of Greensill Capital, which lent money to companies by buying their accounts at a discount, but it collapsed after one of the bank’s main insurers refused to renew the insurance.

In April, the UK’s Serious Fraud Office (SFO) intensified its investigation into alleged fraud, fraudulent transactions and money laundering at the Gupta Family Group Alliance (GFG).

A GFG spokesman declined to comment at the time, but an internal memo seen by Reuters said the company had consistently denied any wrongdoing and pledged its full cooperation.

Reporting by Eric Onstad Editing by David Goodman

Our standards: Thomson Reuters Trust Principles.

Source link