Liberty Steel owner and industrialist Sanjeev Gupta is reportedly in talks with US lender White Oak Global Advisors over a refinancing deal that could help boost UK steel plants. GFG, the metals group run by Gupta, has been seeking fresh funding since March this year, when its key lender Greensill Capital collapsed into administration.
Gupta is keen on securing a new lender as he tries to prevent his steel empire from sinking amid a criminal investigation. The collection of GFG-owned companies employs about 35,000 people, including 3,000 steelworkers in the UK. Liberty Steel plants have been operating intermittently for months.
White Oak has already stepped in to lend to GFG’s steel and coal operations in South Australia. It was previously in talks with Gupta over a loan potentially worth £200m for Liberty Steel UK, but initially said it would walk away from the deal after the Serious Fraud Office announced an investigation into suspected fraud and money laundering at GFG companies.
While the investigation has not concluded yet, talks on refinancing GFG’s European operations are continuing.