© Reuters. FILE PHOTO: People walk below the logo of a Citibank branch in the financial district of San Francisco, California
MELBOURNE (Reuters) – Citibank NA has filed a petition with Australia’s New South Wales Supreme Court to suspend two businesses run by India-UK steel magnate Sanjeev Gupta as part of bankruptcy measures.
According to the court, Citibank’s London branch filed a petition on Tuesday asking OneSteel Manufacturing, the company that includes the Whyalla steel plant in South Australia, and the Tahmoor Coal, which includes a coal mine in New South Wales.
A directions hearing is listed on May 6.
This app came out as Credit Switzerland (SIX 🙂 took steps in London and Australia to offset losses from supply chain provider Greensill Capital, which applied for default, after providing capital to Gupta’s private conglomerate GFG Alliance with others.
Greensill began to unravel last month when their primary insurance company stopped offering credit insurance for a $ 4.1 billion debt in a portfolio it created for clients including Credit Suisse. .
Greensill said in court documents that GFG had begun to default on its obligations. Gupta asserts that his steel businesses have sufficient current capital and that its businesses are strong.
The GFG Alliance said in a statement that its Australian steel businesses have received multiple offers for funding from major investment funds and are in the process of pre-appraisal, with provisions providing enough cash to repay the debt to the creditors.
“The GFG alliance hopes the validation process will be completed within a few weeks before the proposal is finally accepted,” it said.
Regarding the court case, the GFG Coalition said that it did not make any financing with Credit Suisse, has not yet sold the receivables to the bank and will resolutely defend any court proceedings.
“The GFG Alliance is in constructive discussion with Grant Thornton, Greensill executives and other stakeholders to negotiate a consensus and forward-friendly solution, in the best interest of all stakeholders, “it said.
“Australian businesses are doing well and generating positive cash flows, backed by operational improvements we’ve made and strong steel and iron ore markets.”
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