GFGAlliance & CreditSuisse Pact on Liberty PrimaryMetals Australia
Reuters reported that GFG Alliance & Credit Suisse Asset Management agreed formal standstill agreement with regard to Liberty Primary Metals Australia. Standstill agreement includes integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor. 6 week standstill agreement will enable GFG alliance to complete full refinancing of Liberty Primary Metals Australia, expected to complete within this time frame. The standstill agreement prevents any further moves from Credit Suisse to wind up the Whyalla Steelworks and allows GFG to focus on negotiating its AUD 430 restructuring deal with White Oak.
GFG Alliance said that work is continuing to resolving the company's remaining exposure with Credit Suisse following the collapse of Greensill Capital. They said "Sanjeev Gupta and GFG Alliance's Restructuring and Transformation Committee continue to make good progress on restructuring and refinancing of the group with all creditors. This is supported by record steel and aluminium prices, in addition to operational improvement at its major plants."