GT Review reported that Citibank has been granted permission to pursue a winding-up order against three GFG Alliance companies after a UK judge ruled that pandemic-related insolvency protection measures do not apply. The ruling follows demands for payment issued by Citi in March 2021, in the wake of the collapse of Greensill. At the time, the bank argued it was due around USD 32 million from Liberty Commodities, as well as GBP 46.9 million from Speciality Steel UK and EUR 23.3 million from Liberty MDR Treasury Company. The ruling means Citi is free to proceed with a winding-up order against the three GFG Alliance companies, providing it is able to gain sufficient creditor support.Citi’s claims cover trade receivables and future receivables, a method of raising working capital against invoices considered likely to arise at a later date, financed by Greensill. Citi, which acted as note trustee for receivables securitised by Greensill and sold to investors notably Credit Suisse, was initially prevented from proceeding with winding-up orders against the three companies. GFG Alliance spokesperson said “This judgement on Covid protection qualification does not mean that the UK companies in question will be wound up. There will now be a further hearing likely to be in autumn or winter this year at which the merits of the winding up proceedings will be heard in their own right. The companies will defend their position vigorously and have shown their commitment to the alliance’s UK businesses through injections of shareholder capital since October 2021.”The three companies are all considered part of the GFG Alliance, a loose network of companies linked to businessman Mr Sanjeev Gupta. Rotherham-headquartered Speciality Steel operates across five locations and supplies products primarily to the aerospace, automotive and engineering industries.
GT Review reported that Citibank has been granted permission to pursue a winding-up order against three GFG Alliance companies after a UK judge ruled that pandemic-related insolvency protection measures do not apply. The ruling follows demands for payment issued by Citi in March 2021, in the wake of the collapse of Greensill. At the time, the bank argued it was due around USD 32 million from Liberty Commodities, as well as GBP 46.9 million from Speciality Steel UK and EUR 23.3 million from Liberty MDR Treasury Company. The ruling means Citi is free to proceed with a winding-up order against the three GFG Alliance companies, providing it is able to gain sufficient creditor support.Citi’s claims cover trade receivables and future receivables, a method of raising working capital against invoices considered likely to arise at a later date, financed by Greensill. Citi, which acted as note trustee for receivables securitised by Greensill and sold to investors notably Credit Suisse, was initially prevented from proceeding with winding-up orders against the three companies. GFG Alliance spokesperson said “This judgement on Covid protection qualification does not mean that the UK companies in question will be wound up. There will now be a further hearing likely to be in autumn or winter this year at which the merits of the winding up proceedings will be heard in their own right. The companies will defend their position vigorously and have shown their commitment to the alliance’s UK businesses through injections of shareholder capital since October 2021.”The three companies are all considered part of the GFG Alliance, a loose network of companies linked to businessman Mr Sanjeev Gupta. Rotherham-headquartered Speciality Steel operates across five locations and supplies products primarily to the aerospace, automotive and engineering industries.
