LONDON, Oct 10 (Businesshala) – The GFG Alliance said on Sunday that it has agreed a debt restructuring deal with Credit Suisse (CSGNS) for its Australian steel and coal mining assets, and another £50 million (68 million) million dollars) has been announced. In restarting its Rotherham Electric Furnace in the United Kingdom.
GFG, owned by commodity tycoon Sanjeev Gupta, is scrambling to refinance its cash-hungry web of businesses in steel, aluminum and energy after supply chain finance firm Greensil Capital filed for bankruptcy in March.
A statement from GFG said the debt restructuring for Australia’s assets would allow GFG to make “substantial advance payments” to Greensil Bank and Credit Suisse, with the balance to be paid in installments until the new maturity date of June 2023 .
Zurich-based Credit Suisse previously disclosed $2.3 billion in loans exposed to financial and litigation uncertainties within Greensil-linked supply chain finance funds, with approximately $1.2 billion of its assets belonging to GFG.
Production will begin in October, following a cash injection into UK steel business, Liberty Steel, with production plans to reach 50,000 tonnes per month, the statement said.
Chief restructuring officer Jeffrey S. Stein said in the statement that new lenders in Europe had expressed interest in refinancing GFG’s steel assets.
In Europe, GFG said it had initiated legal action against private equity firm AIP, which said it had taken control of GFG’s smelter in Dunkirk, Europe’s largest primary aluminum producer.
($1 = 0.7332 pounds)