Tycoon Sanjeev Gupta’s Liberty Steel UK plans to restart steelmaking next week and continues to seek new funding after its main financial backer Greensill Capital went into insolvency, it said today
Gupta’s conglomerate GFG Alliance said earlier this month it was in talks with administrators of Greensill over a standstill agreement.
Now GFG said those negotiations were ongoing and also said that Liberty Steel was still seeking support from the UK government.
In an insolvency filing earlier in March, Greensill said that GFG, which is its largest client, had warned in February that it would “collapse into insolvency” if the supply chain finance firm stopped providing it with working capital.
GFG, however, said on Monday that its steel and mining operations in Europe and Australia were booking record profits and had adequate funding.
In Britain, Liberty Steel was working with customers on payment terms that would bring in cash earlier while looking for additional working capital facilities, it said.
“Liberty Steel UK continues in constructive discussions with the UK government on measures to supplement these efforts,” GFG said.