Gupta's GFG Alliance agrees terms to refinance Australian unit

Sonali Paul
·1-min read
FILE PHOTO: Liberty Steel's Sanjeev Gupta smiles outside their newly acquired Liberty Steel processing mill in Dalzell, Scotland

By Sonali Paul

MELBOURNE (Reuters) -Indian-British steel magnate Sanjeev Gupta's GFG Alliance said on Wednesday its Liberty Primary Metals Australia arm had agreed terms to refinance its exposure to Greensill Capital, which is facing bankruptcy.

"The new financing is sufficient to pay out its Greensill debt in full and to provide on-going working capital for the LPMA group, which includes the integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor," a GFG Alliance spokesman said.

Documentation is expected to be completed within four weeks, the spokesman said.

GFG Alliance said it is talking to multiple financiers for various parts of its business and to secure sustainable funding to replace Greensill's.

Citibank filed an application with the Supreme Court of New South Wales last month to wind up OneSteel Manufacturing, which includes the Whyalla steel plant in South Australia and the Tahmoor mine.

GFG Alliance, Gupta's privately held conglomerate, has relied heavily on supply chain provider Greensill Capital to fund its operations.

Greensill is facing insolvency after its main insurer stopped providing credit insurance on $4.1 billion of debt in portfolios it had created for clients including Credit Suisse.

(Reporting by Sonali Paul, editing by Louise Heavens)