Sanjeev Gupta's business empire still owes hundreds of millions of dollars to Credit Suisse's Greensill funds. But an agreement is within reach.
Sanjeev Gupta’s Liberty steel group reached an agreement in principle for a debt restructuring with its creditors, including Greensill Capital (UK), Greensill Bank, and Credit Suisse Asset Management (Switzerland), it said in an online statement Tuesday.
The agreement, subject to approval, pauses further litigation by the Swiss bank against the steel group.
Two Billion Outstanding
GFG is the business empire of British entrepreneur Sanjeev Gupta, which ran into difficulties after its partner Greensill Capital went bankrupt and Greensill funds were closed in early 2021.
The conglomerate is also one of the defaulting debtors, who still owe more than $2 billion to Credit Suisse’s Greensill funds. Funds that the Swiss bank made its top priority to get back. Since then parts of the steel conglomerate have been sold and Credit Suisse agreed to debt forgiveness of the Australian unit late last year.
Liquidation Threat
In the UK however, the bank withdrew from insolvency proceedings for GFG last May which has left GFG with the threat of being forced to liquidate ever since.
