GFG Alliance settles disputes with Tata and Rio Tinto
The GFG Alliance owned by commodities tycoon Sanjeev Gupta
has settled disputes with Tata Steel (TISC.NS) and Rio Tinto (RIO.L), it said
on Thursday as it makes progress in refinancing after its main lender
collapsed.
Gupta Family Group (GFG) Alliance has been seeking fresh
funding to rescue its cash-starved web of businesses in steel, aluminium and
energy after supply chain finance company Greensill filed for insolvency in
March.
"It is encouraging that discussions with creditors
continue to progress well and our global restructuring plans continue to
develop," Jeffrey Stein, chief restructuring officer, said in a statement.
The deal with Tata brought to an end proceedings launched
against several GFG units including Liberty Speciality Steels, GFG said without
providing further details.
In 2017 GFG bought Tata's UK speciality steel business for
100 million pounds ($139.21 million) and its pipe mills for an undisclosed sum.
Tata confirmed that an agreement had been reached, but added
in an emailed statement that the terms were confidential.
GFG said it had also settled a dispute with global mining
group Rio Tinto over the acquisition of the Dunkirk aluminium smelter in 2018.
Rio declined to comment.
Gupta's family conglomerate GFG paid Rio Tinto $500 million
for Europe's largest aluminium smelter in France in a complex deal that
involved borrowing from a syndicate of banks and commodity trader Trafigura,
sources have told Reuters.
GFG also said that a previously announced deal with
commodities group Glencore (GLEN.L) to refinance the debt on its aluminium unit
would be finalised once it had resolved repayment issues with an unnamed
creditor.
GFG had previously said it was planning to use the Glencore
facilities to repay debt owed to buyout firm American Industrial Partners.
The group, which has been under a cloud since the UK
launched an investigation into suspected fraud and money laundering in mid-May,
also said it plans to change its governance structure and increase
transparency, including the addition of external independent directors.
Comments
Post a Comment