Liberty Steel Group has announced that it has entered into a standstill agreement with Greensill Bank, its largest creditor, on the debt facilities relating to its European steel businesses. Under the agreement, all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to Liberty in 2019. The agreement, which is valid until October 31 and may be extended until the end of this year, will enable Liberty to develop a longer-term sustainable financing structure.
“Today’s standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders. We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds,” a Liberty Steel Group spokesperson said.
Meanwhile, Citibank has been granted permission to pursue a winding-up order against three GFG Alliance companies, including trading arm Liberty Commodities, as a UK court ruled that pandemic-related insolvency protection measures do not apply. On the court ruling, a GFG spokesperson commented that there will be a further hearing, probably in autumn or winter this year and “the merits of the winding up proceedings will be heard in their own right”.