Business
A six-week standstill agreement with Credit Suisse has expired without Sanjeev Gupta’s GFG Alliance finalising the refinancing of its Australian operations – but the company insists its negotiations to secure the future of the Whyalla Steelworks are progressing well.
Business
Sanjeev Gupta’s GFG Alliance says it has negotiated a six-week standstill agreement with Credit Suisse while it finalises the refinancing of its Australian operations, which include the Whyalla steelworks.
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A court case that aims to wind up operations at the Whyalla Steelworks is still set down to begin this morning, despite an eleventh hour announcement by Sanjeev Gupta’s GFG Alliance yesterday that a refinancing deal for its Australian operations had been agreed.
Sanjeev Gupta’s GFG Alliance says it is closing in on a deal to refinance the Whyalla steelworks, potentially heading off a court bid to wind up its Australian businesses.
Reports are emerging from the UK that British ministers have rejected a request from steel and mining magnate Sanjeev Gupta, owner of the Whyalla steelworks, for a 170 million pound ($307 million) loan to save his GFG Alliance from potential collapse.
The main financier of Whyalla’s steelworks has filed for insolvency in the UK overnight, further clouding the future of the Sanjeev Gupta-owned plant.
Treasurer Rob Lucas says that a $50 million support package for the Whyalla steelworks promised by the former Labor government will not be handed over to Sajeev Gupta’s GFG Alliance to help bail the company out if it or its South Australian operations fall victim to a financial crisis engulfing its major lender.
