UK News Fears for British steel jobs as Gupta's Australian business crumbles
Sanjeev Gupta gearing up for war over steel empire
Gupta's GFG Alliance, which owns Liberty Steel in the UK, is holding emergency talks to secure new financing and save 5,000 British jobs after the collapse of Greensill Capital. Credit Suisse, the Swiss bank that provided $10billion in funding to Greensill, has petitioned a winding-up order on GFG's commodities trading business. But Gupta – who last week admitted he owes billions – has delivered a pugilistic response, saying from his home in Dubai: 'We have our legal defences ready. There is a barrage of lawyers who are readying up all their guns to fight this off.
Fresh fears have been raised about UK steel jobs after Sanjeev Gupta’s empire was thrown deeper into crisis.
Two of the tycoon’s businesses in Australia face being shut down as pressure mounts on his GFG Alliance.
The strain puts his operations in other countries including the UK at risk – he employs around 5,000 people in the UK including 3,000 at Liberty Steel.
The 49-year-old owns steel plants in Rotherham, Stocksbridge, Newport and Hartlepool.
Johnson says he is ‘very hopeful’ Liberty Steel jobs can be saved
Company boss Sanjeev Gupta has said no plants will be shut ‘under my watch’.Sanjeev Gupta has been urgently seeking to refinance its operations following the collapse of its main financial backer, Greensill Capital, threatening an estimated 5,000 jobs in the UK.
But GFG has been struggling since the collapse of Greensill Capital, which specialised in supply chain finance and was the biggest lender to GFG.
Gupta is scrambling to raise cash to keep his empire, which employs 35,000 staff, afloat. The collapse of Greensill – triggered by its exposure to GFG – saddled backer Credit Suisse with heavy losses.
The lender is now trying to wind up two of Gupta’s GFG businesses in Australia to recoup cash. GFG has vowed to fight Credit Suisse in the courts, saying it does not conduct any financing with the lender.
Credit Suisse has targeted several GFG firms in the UK. Last week, the Swiss investment bank filed papers to wind up a trading company, Liberty Commodities.
Lenders can apply to a court and ask it to close a company that owes them money. If successful, the assets can be sold to repay the debts.
Although Gupta has pledged not to close a single UK plant, Whitehall officials are lining up administration and other rescue plans.
GFG said: ‘The Australian businesses are performing well and generating positive cash flow, supported by the operational improvements we’ve made.
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