Liberty Steel confirms it is holding talks in Dubai with Credit Suisse, one of the major creditors.
The reorganization of Sanjeev Gupta’s steelmaking business, which lost millions in the collapse of finance company Greensel, should save the steel business and refinance Liberty Steel’s UK operations.
With this, Gupta would have ensured that his anxiety remained with 3,000 employees. Details of the agreement were to be worked out.
Jobs are at risk
Gupta would sell a plant in Stocksbridge, South Yorkshire, as well as associated factories in the West Midlands. He could then use the proceeds to refinance a nearby factory in Rotherham. There are 1,300 people working together.
Gupta is led by a larger group of companies, the GFG Alliance, which employs approximately 35,000 people in Europe, Asia, the United States and Australia.
Workers’ representatives talk of “significant” uncertainty about keeping jobs in factories.
Liberty has been in trouble since March after the collapse of its main bank, Greensel Capital. Since then, Credit Suisse has been clamoring for money. The revelation of a months-long investigation of fraud and money laundering in Greensel and Gupta as a businessman was not beneficial to the group either. Many of the Greensel loans turned out to be weak.
Credit Suisse has been a big supporter of Gensel and is now taking legal action to get his money back from Gupta companies in the UK and Australia everywhere.
Credit Suisse has attempted to recover $ 10 billion from several companies linked to Gensel.
