Liberty Steel moves to restructure after Greensill collapse

Liberty Steel moves to restructure after Greensill collapse
Liberty Steel moves to restructure after Greensill collapse   -   Copyright  (c) Copyright Thomson Reuters 2021. Click For Restrictions - https://agency.reuters.com/en/copyright.html   -  
By Reuters

<p><body> <p><span class="caps">LONDON</span> (Reuters) – Liberty Steel Group said on Wednesday it had appointed a committee to restructure and refinance the group after Greensill Capital, its biggest lender, filed for insolvency in March.</p> <p>The move comes after Sanjeev Gupta’s family conglomerate <span class="caps">GFG</span> Alliance announced that its Australian unit had agreed terms to refinance its exposure to Greensill. </p> <p>Liberty Steel, which is also under the <span class="caps">GFG</span> umbrella, said in a statement that four new board directors would form a Restructuring and Transformation Committee (<span class="caps">RTC</span>) to focus on fixing or selling underperforming units.</p> <p>“The <span class="caps">RTC</span> will be given full autonomy to restructure Liberty’s operations to focus on core profitable units,” it said.</p> <p>Britain said last month it was allowing Gupta to explore refinancing options before offering any potential government support to Liberty, which employs about 3,000 people in the UK.</p> <p>The British government had rejected a request for an emergency loan of 170 million pounds for <span class="caps">GFG</span>, citing its global spread of operations and opaque structure. </p> <p>Jeffrey Stein will join Liberty as chief restructuring officer, a post he previously held at Whiting Petroleum Corp, Philadelphia Energy Solutions and Westmoreland Coal Company, the statement said. </p> <p/> <p> (Reporting by Eric Onstad, Editing by Louise Heavens and Alexander Smith)</p> </body></p>