GFG today announces that it has reached an agreement on commercial terms (“the terms”) for settlement of all debts claimed by parties responsible for the main creditors of Greensill Capital. The terms, which lay out GFG’s settlement of claims, remain subject to final binding legal agreement.
This development marks the final chapter of GFG’s debt settlement which has been
under negotiation since the collapse of Greensill Capital in March 2021. The agreement once implemented will significantly deleverage GFG, providing it with the platform to develop longer term sustainable financing for its core operations in Australia, US, UK, Romania and Italy.
In the UK, the development paves the way for successful completion of the announced
Restructuring Plan for LIBERTY Speciality Steel UK. It also clears the way to secure fresh capital into the UK businesses poised for leading the industry on decarbonisation.
In Australia, the development means that GFG’s successful InfraBuild business can finalise its FY 2024 accounts, and supports new capital for LIBERTY Primary Metals Australia, including the Whyalla steelworks.
GFG has taken the decision to launch an expedited process to sell part or all of its equity in Tahmoor Coking Coal mine, with some of the proceeds being available for reinvestment in Whyalla to catch up with supplier payments and boost liquidity, subject to board approval.
LIBERTY’s businesses in Europe will also become free of any Greensill debt upon settlement, helping them to refinance and increase production.
Sanjeev Gupta, GFG Alliance Executive Chairman, said:
“Today’s agreement with the Greensill creditors is a great relief for GFG and all our loyal workforce and suppliers. It will enable us to push on from the deep challenges caused by Greensill’s collapse in 2021 and now gives us a financial platform for recovery and growth. With signs of improvements at our operations and some upturn in our markets, we are confident of being able to access longer-term financing to build on the significant investments we have already made in our international businesses, and to rebuild stakeholder confidence.”
Media enquiries to Kelly Fedor; Manager External Communications and Media
+61 404 003 175
