The GFG Alliance has agreed to a debt restructuring deal with Credit Suisse for its Australian steel and coal mining assets; it has also announced plans to inject $68 million (50 million pounds) in restarting its Rotherham electric furnace in the U.K.
Owned by commodities tycoon Sanjeev Gupta, GFG is seeking to refinance its cash-starved conglomerate of businesses which ranges from energy to steel and aluminium following Greensill Capital’s filing of insolvency earlier this year in March.
“The debt restructuring of Australia assets will allow GFG to make a substantial upfront payments to Greensill Bank and Credit Suisse, with the balance paid in instalments until the new maturity date of June 2023,” said GFG in a statement.
Credit Suisse had earlier disclosed its exposure to around $2.3 billion in financial and litigation related uncertainties in Greensill-related supply chain finance funds, of which around $1.2 billion of its assets were related to GFG.
After the cash injection into Liberty Steel, GFC’s steel business in the UK, production is slated to resume sometime this month with production target estimated to reach 50,000 tonnes per month.
According to Jeffrey S. Stein, the chief restructuring officer at Credit Suisse, new lenders in Europe had expressed interest in refinancing GFG’s steel assets.
In a statement GFC said, it had launched a legal action against private equity firm AIP in Europe, after it had taken control of its smelter in Dunkirk.
($1 = 0.7332 pounds)