Gupta says GFG in standstill talks with Greensill administrators
Reuters
Published Mar 12, 2021 07:32AM ET
Updated Mar 12, 2021 09:26AM ET
By Eric Onstad
LONDON (Reuters) - GFG Alliance head Sanjeev Gupta said on Friday the conglomerate was in talks with administrators of its former financial backer Greensill Capital on a so-called standstill agreement.
A standstill deal would mean GFG could pause its debt payments to Greensill, which filed for insolvency this week, for an agreed period of time.
In its insolvency filing this week Greensill said that GFG, which is its largest client, warned in February that it would "collapse into insolvency" if the supply chain finance firm stopped providing it with working capital.
"We are also having constructive discussions with Greensill's administrators ... negotiating a formal standstill agreement," Gupta said in an internal message to workers made available to Reuters by GFG.
Greensill's administrators at Grant Thornton declined to comment on the standstill discussions.
Such an agreement, Gupta said, "would put on hold arrangements between the two parties and allow both sides more time to assess and negotiate next steps".
GFG, an umbrella company for tycoon Gupta's network of steel, aluminium and energy companies, told trade unions this week it had adequate financing to meet its current requirements, but was seeking long-term alternatives.
"On refinancing, we are enthused by the amount of offers that we have received that reflects the strength of our business," Gupta said. "However, given the scale of our operations this process will take some time to organise."
GFG was asking all its businesses to "take prudent steps to manage their cash positions carefully" during the refinancing process, Gupta added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.