British authorities have dropped their petition to wind up several of GFG Alliance’s metals businesses after the parties have engaged in fruitful discussions regarding the firms’ futures.
GFG told investors earlier this week that it will continue its talks with other lenders and that it has been able to increase funding for Liberty Steel to increase production as prices for metals continue to rise. HM Revenue & Customs filed petitions to wind up four of the company’s businesses last month, but recent filings show that those petitions have since been withdrawn.
GFG has been working to shore up funding for its several businesses, including its aluminium operations, after supply chain financier Greensill declared bankruptcy a year ago.
In a statement, Sanjeev Gupta said GFG Alliance is making several changes to its operation that it expects will return the company to a solid financial footing.
“We are also making operational improvements to further enhance the performance of our core businesses against a backdrop of robust demand for our products.”
GFG Alliance currently employes around 5 thousand workers in the British Isles and counts a yearly net revenue of US$20 billion. In addition to Great Britain, GFG Alliance operates plants in the Czech Republic and Romania. In the Czech Republic the group is investing 40 million euro to refurbish the plant there, while in Romania operations are undergoing a 5.5-million-euro program to increase productivity.
Meanwhile in Australia, GFG Alliance operations in South Australia are set to receive a grant of A$50 million (US$36.81 million) to help carry out a refurbishment of its Whyalla steelworks.
GFG Alliance continues to be under investigation by British authorities on allegations of money laundering and fraud. The firm had no other comment on the situation than to say they would continue to cooperate fully with investigators.