UK-based global industrial leader GFG Alliance will save its Whyalla plant and Tahmoor Coal in Australia with a new financing agreement worth $430 million with Liberty Primary Metals Australia (LPMA), according to media reports.
The agreement will replace the funding from the collapsed UK-based financial services company Greensill Capital. “The new financing is sufficient to pay out its Greensill debt in full and to provide ongoing working capital for the LPMA group, which includes the integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor,” GFG stated.
Last month, UK-based Citibank filed an insolvency application in an Australian court against GFG Alliance’s operations in Australia, as SteelOrbis previously reported. The new financing may impact the direction of the court action. In May 6, GFG will defend its Australian operations in the NSW Supreme Court, SteelOrbis has learned.
According to GFG Alliance, most of its businesses in Europe and Australia are performing well and generating positive cash flows, supported by the operational improvements the company has made and by strong steel and iron ore markets.