Gupta Family Group Alliance and Credit Suisse have reached a standstill accord on its Australian plants yesterday that will allow the two parties to come to terms with the collapse of GFG’s financier Greensill Capital.
GFG said in a statement that it expects the pause to give it time to sort out the issues surrounding Greensill’s insolvency.
“GFG Alliance and Credit Suisse Asset Management (CSAM) have agreed a formal standstill agreement with regard to Liberty Primary Metals Australia (LPMA).”
“The six week standstill agreement will enable GFG Alliance to complete full refinancing of LPMA, expected to complete within this time frame,” the statement continued.
Credit Suisse said earlier that it has about US$2.3 billion in loans to Greensill, with about half of that related to GFG Alliance.
“GFG Alliance and CSAM continue to work hard towards resolving GFG Alliance’s remaining exposure with CSAM-Funds following the collapse of Greensill Capital,” promised the firm in a statement.
The standstill agreement covers GFG Alliance’s LPMA steel plant in Whyalla and a coking mine in Tahmoor. GFG Alliance says the parties are making “good progress” with its creditors.
GFG Alliance also operates ALVANCE Aluminium, producer of about 332 thousand metric tons per annum of primary aluminium. Headquartered in Paris, the firm operates Europe’s biggest aluminium smelter at Dunkerque as well as the UK’s sole remaining aluminium smelter at Fort William in Scotland. None of ALVANCE’s operations have yet been impacted by Greensill’s collapse.