GFG Alliance continues to seek financing
GFG Alliance continues to seek financing
<![CDATA[
More than six weeks after the collapse of Greensill Capital, United Kingdom-based metals producer GFG Alliance says it continues to seek alternative financing to replace the funding methods that appeared to have been a key part of its corporate financing system.
An April 27 online article by the BBC indicates sources within GFG say they are considering selling inventory for short-term cash, even if they need to buy back that inventory later.
The article also features a quote from U.K. Business Secretary Kwasi Kwarteng as saying of GFG Chair Sanjeev Gupta, “We should take him at his word and give him time to find finance.” It is perhaps a curious comment considering creditors are increasingly concerned about the extent to which GFG participated in a financing model that may have included some deceptions.
In his late April article, BBC Business Editor Simon Jack writes in part that “time is running out” for the alternative financing search, as creditors affected by the Greensill collapse “prepare their claims to liquidate some of the assets Gupta pledged to Greensill to keep the cash flowing.”
Adds Jack, “Applications to compel the liquidation (winding up orders) of three Liberty Steel group companies have been filed and were originally due to be heard by a judge next week.”
One veteran of that winding up process tells BBC such petitions “are one of the most aggressive steps in a creditors’ armory—they can lead to the end of a company’s life and carry other very draconian legal consequences.”
The article notes that while Gupta and GFG spokesperson have cited weakness in the aerospace sector as the cause of its woes, sources not identified by the BBC indicate “the creditors’ real concern is [that] no one seems to be able to locate £3 billion ($4.1 billion) that creditors allege Greensill advanced to Gupta and remains unpaid and unaccounted for.”
In the meantime, government officials and labor union leaders in the United Kingdom, Australia, France, India and the United States are monitoring the status of steel mills, aluminum smelters and scrap recycling yards that are part of the GFG Alliance global portfolio.
In the U.K., the BBC says it has spoken to government sources who indicate the government there is leaning toward letting the firm become insolvent, so they can rescue “the bits of Gupta’s empire they want to save.”
]]>
Source: Recycling Today
GFG Alliance continues to seek financing
<![CDATA[More than six weeks after the collapse of Greensill Capital, United Kingdom-based metals producer GFG Alliance says it continues to seek alternative financing to replace the funding methods that appeared to have been a key part of its corporate financing system.An April 27 online article by the BBC indicates sources within GFG say they are considering selling inventory for short-term cash, even if they need to buy back that inventory later. The article also features a quote from U.K. Business Secretary Kwasi Kwarteng as saying of GFG Chair Sanjeev Gupta, “We should take him at his word and give him time to find finance.” It is perhaps a curious comment considering creditors are increasingly concerned about the extent to which GFG participated in a financing model that may have included some deceptions.In his late April article, BBC Business Editor Simon Jack writes in part that “time is running out” for the alternative financing search, as creditors affected by the Greensill collapse “prepare their claims to liquidate some of the assets Gupta pledged to Greensill to keep the cash flowing.”Adds Jack, “Applications to compel the liquidation (winding up orders) of three Liberty Steel group companies have been filed and were originally…