By: Sattwik Biswal
A parliamentary committee led by MPs will launch an investigation into the impact of the Greensill Capital collapse on Sanjeev Gupta’s GFG Alliance.
The steel tycoon’s business dealings are expected to come up for investigation before the business select committee.
The steelmaker is now looking to arrange new financing after Greensill’s collapse dented the finances of GFG, leaving the UK arm of Liberty Steel, which employs around 5,000, fighting for survival.
The High Court next week was due to hear winding-up orders issued by creditors against three Liberty Steel companies. The hearings now being delayed, would potentially force the companies into liquidation.
Labour MP Darren Jones, the committee’s chairman, said the committee will probe GFG’s unusual business structure and dependency on Greensill Capital.
“This episode has … raised a catalogue of concerns relating to corporate governance, audit and supply-chain finance.
“As a committee, we will want to examine whether reform is needed in these areas and, additionally, access to and use of tax-payers money, including Covid-related support, and whether adequate checks-and-balances were put in place in return for support from the Government,” Jones was quoted as saying.
The government had earlier rejected a reported £170m bailout request from Gupta over concerns about the “opaque” nature of his company.
“Liberty Steel will fully support the committee’s inquiry and looks forward to contributing to the committee’s work to secure a sustainable future for the UK steel industry and the skilled jobs, local communities and critical supply chains which depend on it,” a spokesperson said on Tuesday (27).