Liberty Steel Denies Loan Breach with Metro Bank
BBC News reported that Metro Bank, which had asked for early repayment of GBP 18 million loans from Liberty Steel more than two years ago, is still
BBC News reported that Metro Bank, which had asked for early repayment of GBP 18 million loans from Liberty Steel more than two years ago, is still waiting for its money. An analysis of Land Registry documents and filings for companies linked to GFG has shown that problems had arisen with a loan secured on the Newport steelworks as early as 2018. Valued at GBP 21 million, the steelworks is owned by a UK company Liberty Steel Property Newport Ltd, controlled by Mr Sanjeev Gupta. Filings at the Isle of Man Companies Registry show that it's one of a portfolio of industrial properties, including another factory in South Wales and locations in Manchester and the West Midlands, which were pledged as security for GBP 18 million loans from Metro Bank.
Liberty Steel Property Newport Ltd's accounts for 2018-19 say that due to breaches of covenants and restrictions, Metro bank have called in the loan facility and have stipulated that full repayment must be made" by 31 March 2020. The accounts for the following year confirm that, although that deadline has passed, there are on going discussions to renegotiate the financing arrangement, and Metro Bank has agreed to defer any action for now. Isle of Man filings list a number of covenants for the loan, including one stipulating that the borrower shall not discount or factor its book debts.
A GFG Alliance spokesman declined to say what had caused the loan terms to be breached. He said no loan terms have been breached due to non-payment and discussions are on going and are being resolved.
Metro Bank said that for confidentiality reasons it is unable to disclose details of customers or transactions with them.