A branch of Sanjeev Gupta’s metals empire that supplies Jaguar Land Rover is in talks with its lender to avoid collapse.
Liberty Aluminium Technologies (LAT) is currently engaged in negotiations with its lender Close Brothers, in an effort to avert being placed into administration, Sky News first reported.
The embattled firm employs 250 people across sites in Coventry, Witham and Kidderminster and counts Jaguar Land Rover as its main client. Gupta recently put LAT up for sale in an effort to refinance the rest of his troubled GFG Alliance Group.
A spokesperson for GFG focused on hopes for avoiding collapse and told City A.M. that a restructuring committee supported by Alvarez & Marsal has been exploring options for LAT’s future, focusing on identifying new owners.
“The RTC is in discussions with four interested parties with a view to achieving an accelerated sale process and is also in discussions with LAT’s main creditor to give it the time to conclude that process effectively,” the GFG spokesperson said.
Interpath Advisory, formerly the KPMG restructuring division, has been appointed by Close Brothers to advise on options for LAT.
It comes after Gupta asked the government for an emergency bailout of around £170m in March to avert his GFG Alliance’s collapse, as it grappled with financing following the demise of its biggest lender Greensill.