Sanjeev Gupta’s GFG Alliance is reportedly in talks with commodities giant Glencore over refinancing debt at its European aluminium business Alvance.
The metals tycoon is scrambling to refinance his business after the collapse of main lender Greensill in March.
The FT reported that Glencore and GFG were in discussions over refinancing $500m of debt at Alvance, which owns assets in France and Belgium.
Any such deal could be a boon for the Swiss firm if it can secure a regular supply of the metal, which has surged 25 per cent in price this year.
Glencore declined to comment. A spokesperson for GFG Alliance said: “GFG continues to focus on the restructuring and refinancing of its businesses following the collapse of Greensill Capital.
“The ALVANCE portfolio is performing well supported by strong market conditions.”
Earlier this week GFG, which is the subject of a UK probe over suspected fraud, announced further steps to restructure its suite of businesses.
It has replaced the boss of its UK steel business with an outsider, and has also drafted in consultants Alvarez and Marsal to explore the sale of its engineering business.