Sanjeev Gupta’s Liberty Aluminium Technologies seeks more time to track down buyers

Sanjeev Gupta’s distressed metal empire that counters the threat of administration has requested its bankers to give more time, as it is trying to negotiate with four potential buyers.

The supplier of cast components to Jaguar Land Rover, Liberty Aluminium Technologies could be enforced by the administration within few days, if its primary bank, Close Brothers does not deliver more time. 

The Group’s Chairman, Sanjeev Gupta has been openly seeking buyers for a portion of his GFG metals empire since May 2021, as he aspires to prevent the collapse of his GFG Alliance, which could threaten thousands of job loss around the world. 

GFG shoved into crisis in March 2021, following the collapse of its biggest lender, Greensill Capital. Credit Suisse, Greensill’s former backer is now pressurizing to repay loans worth as much as $5 billion.

Gupta’s efforts to refinance his businesses has been further complicated by an investigation by the UK’s Serious Fraud Office into “suspected fraud, fraudulent trading and money laundering” related to GFG. A potential lender pulled out after the investigation was revealed last month.

A GFG spokesperson said: “We were hoping to carry out an accelerated sales process with the four possible buyers if talks with Close Brothers and its adviser, the restructuring consultancy Interpath, were successful.”

Gupta’s other major interests are an energy company and the Fort William aluminium smelter in Scotland, which supplies aluminium to Liberty Aluminium Technologies (LAT). LAT employs 250 people across three sites in Kidderminster in Worcestershire and Coventry in the West Midlands, and Witham in Essex.

According to the latest data on accounts of LAT available, it made revenue generation of £68 million in the year to the end of March 2020 with a profit of £7.5 million.

However, the data also delivered an alert that results for the last year would be “adversely impacted due to the uncertainties regarding Covid-19 and the automotive sector”. Jaguar Land Rover has been forced to shut its plants temporarily at various points due to the pandemic.

The GFG Alliance spokesperson further added: “Over the last month the restructuring and transformation committee (RTC) has been exploring strategic options regarding the future of Liberty Aluminium Technologies Ltd.”

“The RTC is in discussions with four interested parties to achieve an accelerated sale process and is also in discussions with LAT’s main creditor to give it the time to conclude that process effectively.”

However, records on Companies House reveals that Close Brothers has two outstanding charges against LAT dating from 2017 and 2018.