Sanjeev Gupta rushes to make money as the steel empire shakes
Sanjeev Gupta’s GFG Alliance is working on plans to get new loans to parts of the UK’s outside group, and to make money from the rapid sale of goods, the metal magnates are struggling to save their empire.
The group is taking these steps to consolidate its finances while continuing to seek alternative long-term financing after the fall of the main lender. Greensill Capital he filed for bankruptcy earlier this month, the GFG, which has a turnover of $ 20 billion in turnover and employs 35,000 people on four continents, is forced.
The UK government on Friday he denied Gupta’s direct request To support equity capital of more than £ 170 million, as well as additional funds to cover losses in the short-term operation while restructuring the group’s debt in the UK’s operations. The proposal proposed the creation of an investment vehicle to provide economic profitability over a period of time. Concerns have been raised about the fate of Liberty Steel, the alliance’s steel business and the UK’s third largest producer. The GFG employs around 5,000 people in the UK, of whom around 3,000 work in the steel industry.
Ministers, however, said they were concerned about the opaque structure of the GFG and feared that any handout would end up leaving the UK. “Our priority is UK sites and jobs, not a corporate organization,” said one government official.
According to people familiar with the situation, the GFG has stepped up some “self-help” measures to prevent financial collapse. These include selling scrap stocks and speeding up the sale of finished products to help raise working capital. The company is in talks to raise money against these indebted assets. One person said the money raised could be returned to UK operations. GFG’s most valuable asset is InfraBuild, its Australian business.
Another option being explored is to raise money against some of the group’s UK operations. One stopping point, however, is understood to be getting Greensill’s permission, as it has security over some GFG assets. Complicating the situation, Greensill administrators are trying to establish the identity of all investors in the financial company and their position within the financing chain.
GFG said Greensill’s difficulties have “created a challenging situation”, but stressed that the team has “adequate funding” to meet current needs. He said he was taking specific action in the UK specialty steel business to “stabilize the business and improve cash flow”.
A government spokesman said he was in control of developments in Liberty Steel and continued to have a close relationship with the company, the UK’s broad steel industry and unions. The Financial Times reported last week that ministers have done just that emergency plans Assume leadership of the British operations of the GFG in the event of a fall. The Treasury helped British Steel in the same way in 2019, before finally selling it to a Chinese steel group.
Members of the company selection committee (BEIS) are working on research plans for the UK’s Gupta steel business, including its links to Greensill Capital, its links with politicians and government support.
However, it has been understood that members of parliament have vetoed any attempt by the committee to force David Cameron. Chancellor Rishi Suna lobbied In the name of Greensill – to break his silence. The BEIS committee will announce its investigation within a fortnight.
The FT recently revealed that Cameron was Prime Minister, Greensill, an ally of former Cabinet Secretary Jeremy Heywood, the Cabinet Office table and the role of “crown representative” advisor.
Meanwhile, tSunday Times It is reported that Cameron signed a loan program for NHS-linked pharmacies in 2012, although an official report rejected Greensill’s proposals, and that the Australian financier used his position to work privately in 11 departments.