13 Apr Billionaire industrialist Gupta insists ‘business as usual’ in Australia despite credit troubles
British billionaire Sanjeev Gupta has declared it is ‘business as usual’ at his Australian steel and coal operations, despite the looming possibility of creditors carving up his conglomerate GFC Alliance.
Gupta’s business empire came under threat when its lender, Greensill Capital, collapsed leaving Swiss investment bank Credit Suisse holding bonds issued by Greensill that included invoices for Gupta’s GFG group.
In Australia, the GFG group of companies are now trying to refinance up to $500 million to cover its local operations in South Australia and New South Wales. In a letter published by The Advertiser, Gupta said his company was well on the way to securing new financing.
“We have already received multiple offers for refinancing from large lenders for our integrated mining and steelworks business in Whyalla and Tahmoor. We are now in advanced stages of due diligence,” he said.
In South Australia, around 1,200 jobs are at risk should OneSteel Manufacturing – a GFG Group entity and the owner of the Whyalla Steelworks – fall into administration. A hearing is scheduled in the NSW supreme court for 6 May.
“In summary, we are maintaining operations as usual; we’re benefitting from strong tailwinds in steel and iron ore markets and high demand for our products in Australia, and our refinancing discussions are progressing very positively,” Gupta added.