Liberty Steel Group has reached an agreement with creditors on global debt restructuring following the collapse of Greensill Capital.
The South Yorkshire-headquartered business told how winding up petitions that threatened its operations have now been adjourned, describing the move with Greensill Bank AG and Credit Suisse Asset Management as a “major stp in the group’s refinancing”.
It is now in the process of negotiating a similar term sheet for the debt restructuring of the European businesses. The agreement remains subject to documentation and the respective internal approvals, with all parties working towards execution “providing Liberty with the platform to develop longer term sustainable financing”.
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Jeffrey Kabel, chief transformation officer, said: “After several months of negotiations, we have now reached an agreement in principle that will provide recovery for the creditors and will significantly deleverage and derisk Liberty. This is a major step forward in our restructuring and transformation and we will now work at pace with the creditors to prepare and execute the agreement.”
A total of 3,000 jobs were at risk under proceedings, with a headquarters and manufacturing plants in Rotherham, as well as Liberty Merchant Bar Scunthorpe, North Lincolnshire. Operations in the North East, Scotland, West Bromwich and South Wales complete the UK portfolio, with sites in the US and Australia too. A cash injection in March staved off a HMRC petition.
Headed by Sanjeev Gupta, it had launched a restructuring bid back in May 2021 following the loss of the lender that saw former Prime Minister David Cameron’s lobbying brought under scrutiny.
Liberty said the agreement will allow it to further advance its Greensteel strategy and industry-leading ambition to become carbon neutral by 2030.
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