LIBERTY Steel Group has entered into a Standstill Agreement with its largest creditor Greensill Bank on the debt facilities relating to its European steel businesses. Under the agreement all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to LIBERTY in 2019. The agreement shall enable LIBERTY to develop a longer term sustainable financing structure. The agreement is valid until 31st October 2022 and may be extended until the end of 2022. Detailed due diligence and information exchange continues between the two parties.A LIBERTY Steel Group spokesperson said "Today's standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders. We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds."Greensill helped to fund Gupta’s acquisition in 2019 of European steel plants from ArcelorMittal, whose prize assets comprised two steelworks in the Czech Republic and Romania. Greensill bank was shut down by German financial watchdog BaFin in March 2021 after an audit discovered potential balance sheet manipulations. The regulator subsequently filed a criminal complaint against the bank’s management as the bank was unable to provide evidence of the existence of receivables in its balance sheet that it had purchased from the GFG Alliance Group.The agreement comes just days after Mr Sanjeev Gupta failed to have a legal attempt to wind up three of his UK steel businesses thrown out on the grounds that their problems were caused by the coronavirus pandemic.
LIBERTY Steel Group has entered into a Standstill Agreement with its largest creditor Greensill Bank on the debt facilities relating to its European steel businesses. Under the agreement all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to LIBERTY in 2019. The agreement shall enable LIBERTY to develop a longer term sustainable financing structure. The agreement is valid until 31st October 2022 and may be extended until the end of 2022. Detailed due diligence and information exchange continues between the two parties.A LIBERTY Steel Group spokesperson said "Today's standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders. We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds."Greensill helped to fund Gupta’s acquisition in 2019 of European steel plants from ArcelorMittal, whose prize assets comprised two steelworks in the Czech Republic and Romania. Greensill bank was shut down by German financial watchdog BaFin in March 2021 after an audit discovered potential balance sheet manipulations. The regulator subsequently filed a criminal complaint against the bank’s management as the bank was unable to provide evidence of the existence of receivables in its balance sheet that it had purchased from the GFG Alliance Group.The agreement comes just days after Mr Sanjeev Gupta failed to have a legal attempt to wind up three of his UK steel businesses thrown out on the grounds that their problems were caused by the coronavirus pandemic.
