UK-based Liberty Steel, a subsidiary of GFG Alliance, is about to secure a £200 million loan from US-based White Oak Global Advisers, according to media reports.
The loan, which will be subject to due diligence, is planned to provide working capital which will allow Liberty Steel’s steel operation in the UK to increase production. The loan may be the lifeline Sanjeev Gupta, owner of GFG Alliance, has been looking for its UK business following the collapse of its lender UK-based financial services company Greensill Capital. However, the loan would not be used to refinance the company’s debt, as SteelOrbis understands.
The UK government had rejected the company’s request for £170 million in financial support, so the company had been searching for other sources of funding.
Earlier this month, GFG Alliance also obtained new financing worth $430 million from Liberty Primary Metals Australia for its Whyalla plant and Tahmoor Coal in Australia, as SteelOrbis previously reported.