Mr Sanjeev Gupta to Hold Crisis Talks with UK Worker Unions
The Daily Mail reported that troubled steel magnate Mr Sanjeev Gupta will hold crisis talks with unions as fears grow that his empire is teetering on the brink of collapse. Unions are desperate to find out if the collapse of Greensill will hit Liberty Steel's UK operations and have been frustrated by the lack of transparency. A spokesman for steel union Community said “We will be meeting with Liberty early this week to seek assurances. We take confidence from the fact this is a vital strategic business with a world-class workforce producing the best steels money can buy.”
Thousands of jobs in Britain's steel industry are thought to be at risk after the biggest lender to Gupta's GFG Alliance, Greensill Capital, was thrown into turmoil and is now expected to go into administration. Greensill crumbled after Credit Suisse wound up GBP 7.2 billion of funds. Bankers were said to be concerned about financing linked to Gupta. Greensill was put under further pressure after its chairman and two other board members resigned.
The GFG Alliance is a collection of companies that includes Liberty Steel, Britain's third-largest steel maker with 3,000 workers at 11 sites. Gupta, 50, became the 'saviour of UK steel' after a spending spree that saw him buy up plants in Rotherham, Stocksbridge, Newport and Hartlepool. But the Indian-born British tycoon also went on a global acquisition binge, buying steel and aluminium factories in Australia and the US. The GFG Alliance has racked up an estimated GBP 4 billion of debt to lenders, including GBP 3 billion to Greensill alone.