GFG Alliance is proceeding with financing for various aspects of its businesses to replace sustainable funding to replace Greensill Capital, which is in bankruptcy.
Liberty Primary Metals Australia (LPMA) has agreed to terms to refinance its funding exposure with the deal to be completed by early June. The new financing source is sufficient to remove the Greensill debt and facilitate working capital, a GFG spokesperson told the media. LPMA includes the OneSteel Manufacturing integrated and steel arm in Whyalla and a coking coal mine in Tahmoor.
The refinancing addresses a Citibank filing in New South Wales against OneSteel assets. Citibank was an investor in Greensill which used OneSteel for collateral.
UK’s Liberty Steel Group has also appointed four new board directors to restructure and refinance the group. The Restructuring and Transformation Committee (RTC) will have autonomy to streamline the company including selling underperforming divisions or reorganizing. The division is exploring refinancing options and reassessing the business model after British officials denied any emergency loans. Some public loans may become available to safeguard the 3,000-employee company after restructuring.