GFG Alliance’s UK-based subsidiary Liberty Steel’s Restructuring and Transformation Committee has announced that the company has signed a term sheet subject to contract on an agreement in principle for a debt restructuring with its creditors, including UK-based Greensill Capital Limited, Germany-based Greensill Bank AG and Switzerland-based Credit Suisse, a major step in the company’s refinancing.
Liberty Steel and Greensill Bank are in the process of negotiating a similar term sheet for the debt restructuring of Liberty’s European steel businesses, as they entered into a standstill agreement in June. Under the agreement, all enforcement actions were paused between the parties over the Greensill Bank debt facilities provided to Liberty in 2019, as SteelOrbis previously reported.
All parties will now work to prepare and execute the agreement, providing Liberty with the platform to develop longer-term sustainable financing. Under the agreement, the parties have postponed the winding up of petitions against Liberty entities.
The agreement will allow Liberty to further advance its greensteel strategy and ambition to become carbon neutral by 2030.