Commodities tycoon Sanjeev Gupta’s GFG Alliance struck a deal with Credit Suisse over the weekend to restructure debt for its Australian steel and coal mining assets.
Debt restructuring of GFG Alliance’s Australia assets is expected to enable the firm to make a «substantial upfront payment» to Greensill Bank and Credit Suisse, according to a statement from the commodities firm, with the balance paid in installments until the new maturity date of June 2023.
Credit Suisse had previously flagged around $2.3 billion of problematic loans exposed to Greensill-linked supply chain finance funds with some $1.2 billion of assets related to GFG.
European Business
In the U.K., GFG said it would inject 50 million British pounds ($68 million) injection into the restart of Liberty Steel’s Rotherham furnace, eyeing October for production to kick off with output plans of 50,000 tonnes per month as soon as possible.
Chief restructuring officer Jeffrey S. Stein noted in the statement that new lenders in Europe had expressed interest in refinancing GFG’s steel assets.
Earlier this month, GFG also announced that it would launch legal action against private equity firm AIP to unwind the transferal of ownership in its Dunkirk-based smelter, Europe’s largest primary aluminum producer.
