British Govt. rejects Sanjeev Gupta’s bailout plea to prevent GFG Alliance from collapsing
The British metal magnate and Executive Chairman of GFG Alliance, Sanjeev Gupta’s request for a £170 million emergency loan to prevent his group from collapsing have been rejected by British ministers, as reported by the industry sources on 28th March 2021.
The plea was rejected amid concerns by ministers over the structure and corporate governance at GFG Alliance, and whether bailout funds would remain in the country, as reported by a person familiar with the matter.
As per the sources, Mr Gupta was working on plans to raise fresh loans against parts of the group facility outside the UK, which added that he also focused to generate cash from an expedited sale of goods.
Sanjeev Gupta’s GFG Alliance was the biggest recipient of financing from Greensill, a British financing company that filed for insolvency in March 2021.
The conglomerate had already initiated discussions with administrators of its former financial backer Greensill on a so-called standstill agreement.
However, there has been no immediate response both from the GFG and the British Govt.
On 20th March 2021, it was reported that GFG had secured a loan from Trafigura in 2018 by agreeing on a six-year deal to sell aluminium to the commodity trader at a discount to market prices.
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