“Major restructuring will allow to pay back creditors”, says GFG Alliance
On 28th June 2021, Sanjeev Gupta-owned GFG Alliance stated that it is advancing towards a major restructuring, which will allow it to pay back creditors, following the collapse of its principal lender Greensill Capital in March.
The statement added: “This, in turn, will allow GFG to refocus its business, protect jobs and develop further its remaining assets.”
The commodity group has been under stress to look out for refinancing its cash-starved nexus of businesses in aluminium, steel, and energy after lending firm Greensill filed for insolvency.
Sanjeev Gupta’s GFG said: “The Company had agreed on a framework with Greensill Bank’s administrators for positive direct engagement to achieve an amicable resolution.”
The announcement came following GFG and Credit Suisse said in the previous week that they had reached a standstill agreement on Australian steel and coal mining assets, which will allow the full refinancing of that business.
The Zurich-based investment banking company, Credit Suisse had previously revealed some $2.3 billion worth of loans exposed to financial and litigation uncertainties within the funds, with some $1.2 billion of its assets related to GFG Alliance.
“The developments help pave the way for a refinancing which will enable GFG to pay back creditors,” GFG said.
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