Liberty Steel Advances Australia & UK Refinancing & Restructuring
Liberty Steel Group announced that following very constructive and productive meetings at the weekend in Dubai, Mr Sanjeev Gupta and his newly-formed
Liberty Steel Group announced that following very constructive and productive meetings at the weekend in Dubai, Mr Sanjeev Gupta and his newly-formed Restructuring and Transformation Committee are in advanced discussions with Credit Suisse Asset Management to reach a formal standstill agreement on its LIBERTY Primary Metals Australia business while refinancing is completed that will repay Credit Suisse out in full. Both parties also made significant progress in agreeing a framework to resolve GFG Alliance’s remaining exposure with Credit Suisse. This work includes identifying a positive solution which will allow LIBERTY to complete the restructuring and refinancing of its UK operations, protecting thousands of jobs and supporting the fulfilment of its vision to be a leader in the decarbonisation of the UK steel industry.
As part of this restructuring LIBERTY will look to sell its aerospace and special alloys steel business in Stocksbridge, which while being a unique, high quality business servicing marquee customers in aerospace, auto and other highly engineered applications, is not core to the GREENSTEEL vision of LIBERTY. This sale will allow LIBERTY to focus on developing its Rotherham plant including its electric arc furnaces into a competitive 2 million tonnes recycled GREENSTEEL plant.
LIBERTY has also already commenced the formal sale process of LIBERTY Aluminium Technologies and LIBERTY Pressing Solutions, working collaboratively with the main customers of these plants to find a sustainable home for these quality businesses, which are also non-core to LIBERTY’s vision of decarbonised GREENSTEEL.
A formal sale process for Stocksbridge and its downstream plants, the narrow strip mill at Brinsworth and Performance Steels at West Bromwich will be launched shortly. GFG’s advisers Alvarez & Marsal will run both processes.