Fresh Funding to Help Liberty Steel Restart its UK Steel Operations

SEATTLE (Scrap Monster):  Sanjeev Gupta-led GFG Alliance has announced plans to fund 50 million pounds towards restart of its Liberty Steel Rotherham electric arc furnace (EAF) and Stocksbridge plant operations. This is expected to save majority of around 1,000 jobs.

The Alliance has entered into a debt restructuring deal with Credit Suisse. It must be noted that GFG has been in severe financial crisis after its main lender Greensill Capital filed for insolvency in the month of March this year.

According to the company, the debt restructuring deal between Credit Suisse Asset Management (CSAM) and Liberty Primary Metals Australia (LPMA) for its Australian steel and coal mining assets will allow the group to make substantial upfront payment to Greensill Bank and Credit Suisse. The balance payment will be made in instalments, extended until the new maturity date of June 2023, it added.

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The funding of GBP 50 million into Liberty Steel UK will ensure restart of the Rotherham EAF in October itself. The facility will reach the planned capacity of 50,000 tonnes per month at the earliest.

It must be noted that the earlier announced deal with San Francisco-based White Oak Global Advisors to secure funding for its Australian business could not be finalized in time.