A source reports that Sanjeev Gupta is making great efforts to lay hold of its Belgian aluminium rolling mill after a US private equity firm AIP took legal action in the UK to seize control. In an attempt to do so, Gupta’s metals group GFG Alliance, which is the subject of an investigation by the UK’s Serious Fraud Office, is fighting to refinance more than $5 billion of debt since the collapse of Greensill Capital, its main lender.
The lender to GFG’s Duffel rolling mill outside Antwerp, however, launched legal proceedings in the past week.
AIP successfully persuaded a court to appoint administrators at a UK holding company that owns the asset. That could result in the transfer of ownership of the Belgian mill from GFG Alliance to AIP.
A spokesman for GFG said it is “vigorously challenging” the administration. “A full refinancing package for the Duffel business has been agreed with a major international group, which would see all of Duffel’s creditors paid in full, and we expect that process to complete soon,” GFG added.
On the other hand, AIP chose not to comment on the matter.
AIP’s legal action also threatens to complicate a rescue loan that Gupta recently negotiated with commodity trader Glencore. Glencore has offered GFG Alliance to refinance some of the more than $500 million of debt at both the Duffel site and its French sister plant in Dunkrik with a new six-year loan.
Last week Sanjeev Gupta confirmed that his group rejected AIP’s bid for the two assets, adding that GFG was “targeting an amicable settlement of their debts using the facilities agreed with Glencore.”
In early 2021, AIP bought all of the Duffel plant’s debt and a portion of the Dunkrik aluminium smelter’s debt.
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