Liberty Aluminium Technologies Repays Loan to Avert Crisis
Sky News reported that Mr Sanjeev Gupta’s GFG Alliance has repaid a roughly-GBP 10 million loan from Close Brothers to UK subsidiary Liberty Aluminium Technologies. Retiring the loan will prevent Liberty Aluminium Technologies from collapsing into bankruptcy proceedings. The payback to Close Brothers averted receivership, which looked to be an increasingly certain outcome for the subsidiary.
The repayment is understood to have taken place in the last few days although it was unclear how Mr Gupta had secured the money to do so. It will secure the short-term future of Liberty Aluminium Technologies and head off the prospect of the company's collapse into administration, which had begun to look increasingly possible in recent times. The reprieve for Liberty Aluminium Technologies, , is unexpected, and raises questions about whether Mr Gupta has attempted to seek funding from JLR or borrowed money from another party to repay Close Brothers.
Liberty Aluminium Technologies, which employs 250 people at three UK sites and operates from sites at Kidderminster, Witham and Coventry, was put up for sale a month ago following very constructive and productive meetings between Mr Gupta and Credit Suisse. Liberty Aluminium Technologies produces precision parts for automotive customers. Liberty Aluminium Technologies is a major supplier to Jaguar Land Rover, as they have begun transitioning to the use of aluminium alloys where possible for sustainability and lightweighting purposes.