SANJEEV GUPTA'S request for a £170 million bailout loan to prevent his group, GFG Alliance, from collapse, was reportedly rejected by the British ministers on Sunday (28).
The steel magnate was working on plans to raise new loans against parts of the group outside the UK, according to a report in the Financial Times on Sunday (28).
There are fears over the future of Liberty Steel after its major financial backer, Greensill Capital, collapsed.
Sanjeev Gupta’s GFG Alliance employs a total of 5,000 people in the UK – 3,000 of them in steel and aluminium businesses across 12 UK sites.
“The collapse of Greensill has put financial pressure on the GFG Alliance and our British steel operations,” Gupta had written in his letter to the government.
The Financial Times reported that the government rejected Gupta's bailout plea because of multiple concerns.
Moreover, GFG are reportedly in talks with administrators of its former financial backer Greensill on a so-called standstill agreement.
A spokeswoman for the government had earlier told the BBC: “The government is closely monitoring developments around Liberty Steel and continues to engage closely with the company, the broader UK steel industry and trade unions.”
In the last few days also, the prime minister and business secretary had pledged to be working towards saving the company from collapse and the 5,000 jobs in the UK.
“The government will do everything to ensure that we continue with British jobs producing British steel,” Boris Johnson had said and adding “I also share the anxiety of the families of steelworkers.”
