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regular-article-logo Friday, 22 November 2024

GFG Alliance settles disputes with Tata Steel and Rio Tinto

Gupta Family Group Alliance has been seeking fresh funding to rescue its cash-starved web of businesses in steel, aluminium and energy

Reuters London Published 06.08.21, 03:08 AM
Sanjeev Gupta.

Sanjeev Gupta. File photo

The GFG Alliance, owned by commodities tycoon Sanjeev Gupta, has settled disputes with Tata Steel and Rio Tinto, the company said on Thursday as it makes progress in refinancing after its main lender collapsed.

Gupta Family Group (GFG) Alliance has been seeking fresh funding to rescue its cash-starved web of businesses in steel, aluminium and energy after supply chain finance company Greensill filed for insolvency in March.

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“It is encouraging that discussions with creditors continue to progress well and our global restructuring plans continue to develop,” Jeffrey Stein, chief restructuring officer, said in a statement.

The deal with Tata brought to an end proceedings launched against several GFG units, including Liberty Speciality Steels, GFG said without providing further details.

In 2017, GFG bought Tata’s UK speciality steel business for £100 million ($139.21 million) and its pipe mills for an undisclosed sum.

The Tatas confirmed that an agreement had been reached, but added in an emailed statement that the terms were confidential.

GFG said it had also settled a dispute with global mining group Rio Tinto over the acquisition of the Dunkirk aluminium smelter in 2018. Rio declined to comment.

Gupta’s family conglomerate GFG paid Rio Tinto $500 million for Europe’s largest aluminium smelter in France in a complex deal that involved borrowing from a syndicate of banks and commodity trader Trafigura, sources have told Reuters.

GFG also said that a previously announced deal with commodities group Glencore to refinance the debt on its aluminium unit would be finalised once it had resolved repayment issues with an unnamed creditor. GFG had previously said it was planning to use the Glencore facilities to repay debt owed to buyout firm American Industrial Partners.

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