“We are moving with significant momentum towards a profitable, restructured and focused business,” said the group’s founder Sanjeev Gupta.
Apart from initiatives to restructure, new business plans are being developed for the LSUK businesses which would allow the company to resume production in the short term and create a more sustainable future for the assets over the longer term, the company said in a press note on Thursday.
Gupta’s Liberty steel was actively looking for financing options, after its biggest lender, Greensill had collapsed last year. From introducing new initiatives like setting up a Restructuring and Transformation Committee for cash generation to knocking on the doors of every possible lender, the chairman of GFG Alliance Sanjeev Gupta was firefighting his way to save his own company.
“It is encouraging that discussions with creditors continue to progress well and our global restructuring plans continue to develop… In many cases, refinancing options have been oversubscribed, ” said the company’s Chief Restructuring Officer Jeffrey S. Stein.
The company will continue to publish regular updates on the restructuring and refinancing for the benefit of all of its employees and stakeholders, Stein added.
Gupta said that despite the challenges, the company’s core businesses continue to perform very well due to the current commodity boom.
“Bolstered by strong demand and record prices for steel, iron ore, and aluminium in global markets, alongside improvements in systems and operations, GFG notes strong performance for its core businesses,” Sanjeev Gupta said in the press note.
The company said that talks are underway to complete LIBERTY Primary Metals Australia’s (LPMA) refinancing, as global refinancing efforts continue
At ALVANCE, a globally integrated aluminium business, part of the GFG Alliance the company has struck a strategic deal cementing a long-term commercial relationship with two of the largest trading houses in the world, has been agreed.
“The deal involves the supply of the raw material requirements of Dunkirk and Duffel… Under the agreement ALVANCE’s debt will be refinanced allowing creditors to be repaid,” the press note said
The group has also settled two disputes with major international companies,
and Rio Tinto.
Tata Steel had in April launched proceedings against Liberty Speciality Steels, Liberty House Group PTE and Speciality Steel UK, all part of GFG Alliance, over the alleged missed payments from the 2017 acquisition.
“We have reached an agreement with Tata Steel, bringing to end proceedings launched against LIBERTY Speciality Steels, LIBERTY House Group PTE, and Speciality Steel UK earlier this year,”
GFG has settled a post-completion dispute with Rio Tinto Group over the acquisition of the Dunkirk aluminium smelter in 2018
“Much remains to be done, but we believe that we are now making rapid progress in building faith with our creditors and other stakeholders through our restructuring plan,” Gupta added.