Sanjeev Gupta has agreed a term sheet with White Oak Global Advisors for £200 million ($278m) of financing for Liberty Steel UK. The loan will be subject to due diligence and the approval of Credit Suisse Group, an informed source tells Kallanish.
GFG Alliance declined to comment.
White Oak Global Advisors also agreed to provide financing to Liberty Primary Metals Australia earlier in the week (see Kallanish passim).
Liberty Steel meanwhile appointed four new board directors to lead and accelerate its restructuring and refinancing. The new appointments will join the Liberty board with immediate effect and form a new Restructuring & Transformation Committee (RTC), which will be led by an independent chief restructuring officer.
At the end of March UK business secretary Kwasi Kwarteng said the UK government wants to see what new financing GFG can arrange before taking any action to support its UK plants. At the start of April the firm resumed partial production at its Rotherham plant following a period of intermittent operations. The Stocksbridge furnace, and the Stocksbridge, Thrybergh and Brinsworth rolling mills are expected to follow.
Adam Smith Germany