Reuters reported that French prosecutors are, widening an on going investigation into EUR 18 million state-backed loans to one of its operations of GFG Alliance in France. Prosecutors in Paris said they opened an investigation in July into allegations of misuse of company assets and money laundering by GFG, following a decision by prosecutors in Poitiers to pass on their initial probe into the loan. The probe launched in the western city of Poitiers covers a state-backed loan from Greensill for a GFG-owned aluminium works that makes auto parts. It was prompted by employee claims that the funds disappeared after briefly being deposited at the unit. The new investigation was first reported by the Financial Times on Sunday.GFG said in a statement that it is not aware of any such investigation and refuted any suggestion of wrongdoing in its French operations".The broader French investigation comes on top of a probe by Britain's Serious Fraud Office into GFG Alliance as it attempts to refinance its steel and aluminium businesses following the collapse of supply chain finance firm Greensill Capital.