The Greensill Capital administrator does not verify the invoices based on the loan provided to Gupta
The Greensill Capital administrator has not verified the invoices for the loan given to Sanjeev Gupta after the companies listed in the documents denied having done business with the metal tycoon.
Greensill, when last month’s collapse turned into a corporate and political scandal, offered Gupta companies financial support backed by suppliers and customer payments.
The disputed bills raise doubts about other transactions based on billions of pounds from Greensill to Gupta.
It is the GFG Alliance of the metal tycoon. It owns metal plants around the world and employs 35,000 people on the verge of collapse. The state of steel operations in the UK has been particularly worrying, with unions warning that up to 5,000 jobs are at risk across the country.
Grant Thornton, who wants to recoup the money he owes Greensill as a director of the bankrupt company, approached companies listed as a debtor to Gupta’s Liberty Commodities trading company last month, taking out hundreds of millions of pounds backed by bills.
Greensill extended a financing facility to charge Liberty Commodities, which allowed customers to exchange bills in advance. This process, also known as factoring, allowed Greensill to amortize when the customer settled the invoice by paying for the goods purchased from Liberty.
However, many of these companies have discussed the veracity of the invoices of the metal tycoon raw material trading company, according to people familiar with the issue and correspondence observed by the Financial Times.
German scrap business RPS Siegen GmbH confirmed to FT that it had been asked about an excellent invoice and said it had not negotiated with Liberty Commodities.
“We know them, but there is no commercial relationship between us,” said Winfried Winterhager, director of RPS Siegen.
Grant Thornton and Greensill Capital resigned. The Gupta GFG Alliance has said it cannot comment without seeing important bills.
Credit Suisse, which has invested its customers ’money in bond-type products invented by Greensill, this week has filed for bankruptcy against several companies of the British company, including Liberty Commodities.
Gupta, who once said he was a “savior of steel” because he rescued metal plants from Wales to Australia, discussed them on Thursday there were debts for amortization.
The UK government last week rejected Gupta’s request for more than £ 170 million to help rescue British operations.
FT du previously reported Greensill provided funding to Gupta’s business empire based on the bills of companies that were seemingly independent, but actually had a deep connection to the steel mogul.