Gupta Family Group Alliance and Credit Suisse reached a standstill deal yesterday on its Australian factories, which will allow both sides to come to terms with the collapse of GFG financier Greensill Capital.
GFG said in a statement that it expects the break to give it time to work through the issues surrounding Greensill’s insolvency.
âGFG Alliance and Credit Suisse Asset Management (CSAM) have entered into a formal standstill agreement regarding Liberty Primary Metals Australia (LPMA). “
“The six-week standstill agreement will allow GFG Alliance to finalize the full refinancing of LPMA, which is expected to be completed within this time frame,” the statement continued.
Credit Suisse said earlier it had around $ 2.3 billion in loans to Greensill, about half of which was tied to GFG Alliance.
“GFG Alliance and CSAM continue to work hard to resolve GFG Alliance’s remaining exposure with CSAM-Funds following the collapse of Greensill Capital,” the company promised in a statement.
The standstill agreement covers the LPMA steel plant of GFG Alliance in Whyalla and a coking mine in Tahmoor. GFG Alliance says the parties are making “good progress” with its creditors.
GFG Alliance also operates ALVANCE Aluminum, which produces approximately 332,000 metric tonnes per year of primary aluminum. Based in Paris, the company operates Europe’s largest aluminum smelter in Dunkirk as well as the UK’s only remaining aluminum smelter at Fort William in Scotland. None of ALVANCE’s operations have yet been affected by the Greensill collapse.