Liberty Steel announces UK business restructuring post creditor agreement

Liberty Steel announces UK business restructuring post creditor agreement

01 Apr, 2024

Liberty Steel announces UK business restructuring post creditor agreement

Liberty Steel, owned by commodities tycoon Sanjeev Gupta, recently announced a significant breakthrough in its financial restructuring efforts. After successfully securing capital, the company has reached an agreement with major creditors, setting the stage for a comprehensive overhaul of its British operations.

Part of the GFG Alliance, Liberty has been navigating refinancing challenges across its steel, aluminium, and energy sectors since the insolvency filing of its supporter, Greensill, in March 2021. The recent capital infusion includes a $350 million bond issuance by one of its Australian units, facilitated by Jefferies, alongside a $350 million asset-backed term loan arranged by BlackRock and Silver Point Finance.

This agreement primarily addresses the debt associated with Liberty's British businesses, enabling the consolidation of its steel operations under a revamped corporate structure. As a strategic move, Liberty plans to enhance melting capacity at its Rotherham facility in northern England to 2 million metric tons annually, doubling its current capacity.

Despite challenges such as operational suspensions and output reductions due to soaring power prices, Liberty maintains operations across Europe, Australia, and the United States. Notably, its Czech subsidiary, Liberty Ostrava, is poised to restart its blast furnace and ramp up production following earlier disruptions.

However, amidst these developments, the Serious Fraud Office in Britain initiated an investigation in 2021 into alleged fraud, fraudulent trading, and money laundering within the GFG Alliance, adding another layer of complexity to Liberty Steel's journey towards financial stability and operational efficiency.

 

 


Related News

Intuit Launches UK Small Business Growth Council to Drive AI Innovation

03 Apr, 2025

Intuit has launched the UK Small Business Growth Council to…
Read More
Affirm and Adyen expand partnership to offer payment solutions in UK

20 Mar, 2025

Adyen, a global financial technology platform, has expanded its partnership…
Read More
UK and Japan strengthen partnership to advance robotics research globally

13 Mar, 2025

The United Kingdom Atomic Energy Authority (UKAEA) and Japan’s Fukushima…
Read More
UK and Japan strengthen partnership to advance robotics research globally

11 Mar, 2025

The United Kingdom Atomic Energy Authority (UKAEA) and Japan’s Fukushima…
Read More
UK and India Strengthen Ties with £41 Billion Growth Partnership

10 Mar, 2025

The UK is strengthening its ties with India through expanded…
Read More
UK Ministers Secure 17 New Deals to Boost UK-India Trade Collaboration

06 Mar, 2025

UK ministers have announced 17 new export and investment deals…
Read More

© 2025 Business International News. All rights reserved | Powered by Cred Matters.