UK Credit

Liberty Steel sells UK assets, in talks with Credit Suisse

The Liberty Steel flag flies over the Dalzell steel plant in Scotland, UK April 8, 2016. REUTERS / Russell Cheyne / File Photo

Tycoon Sanjeev Gupta’s Liberty Steel group said on Monday it would sell several UK assets and hold talks with Credit Suisse about a standstill deal for its Australian unit after the collapse of Liberty’s main lender Greensill Capital.

Gupta’s family-owned conglomerate was looking to refinance its network of cash-strapped steel, aluminum and energy companies after supply chain finance firm Greensill filed for insolvency in March.

He said on Monday he planned to sell three “non-core” UK factories as part of a major restructuring.

“As part of this restructuring, Liberty will seek to sell its aerospace and specialty alloys steel business to Stocksbridge,” the company said in a statement.

“Liberty has also already started the formal sale process of Liberty Aluminum Technologies and Liberty Pressing Solutions,” he added.

The statement also said that after meetings in Dubai over the weekend, Gupta was in advanced talks with Credit Suisse over a formal standstill agreement regarding its operations in Australia.

The deal would be valid until “the refinancing is completed which will fully reimburse CS,” he added.

Among the investors burned by the widespread fallout from the Greensill collapse were clients of Credit Suisse, who had invested in a $ 7.3 billion finance fund exposed to debt issued by the finance company. Read more

Greensill Capital loaned companies money by buying their bills at a discount, but it collapsed in March after one of its major insurers refused to renew its coverage.

The Gupta Family Group Alliance (GFG) has been in the cloud since the UK announced an investigation into suspected fraud and money laundering on May 14.

Earlier this month, the company appointed a committee to restructure and refinance the group.

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