STEEL tycoon Sanjeev Gupta's GFG Alliance has struck a new funding deal with a Californian investment firm.
The deal with White Oak Global Advisors has come on the eve of a court case to wind up the steeelmaker's operations in Australia. Moreover, GFG Alliance's new funding firm's UK arm aims to “eliminate unnecessary paperwork, policies, and processes from our business, so we can offer you fast, convenient business finance”.
Credit Suisse had filed legal action to wind up Gupta's mining operations and steelworks in Australia to recover losses. Whyalla, in South Australia, was facing an uncertain future because Gupta's company was the main employer for the people in the city.
"Liberty is making good progress with refinancing – Liberty Primary Steel and Mining Australia has today agreed terms to refinance its Greensill exposure.
"Record steel prices and Liberty’s operational improvement programme have enabled its core businesses to maintain their strong performance since the beginning of the year," the company was quoted as saying.
There was also a major shake-up in the boardroom with the company's chief finance officer, V Ashok, to quit after being in the job for 18 months.
In other role changes - turnaround expert Jeffrey S. Stein, will be chief restructuring officer; Jeff Kabel, a former JP Morgan banker and former chairman of the International Steel Trade Association, will be chief transformation officer; and Iain Hunter, the former head of Mr Gupta’s bank Wyelands, will take charge as chief governance officer.
