Posted on 07 Apr 2021
Sanjeev Gupta's Liberty Steel on Tuesday resumed partial production at its Rotherham plant in northern England, following a period of intermittent operations since March 12, the company said in a statement.
Gupta's main financial backer Greensill Capital went into insolvency last month. Liberty Steel is part of Gupta's conglomerate GFG Alliance, which said in March, it was in talks with administrators of Greensill over a standstill agreement.
In an insolvency filing last month, Greensill said GFG, which is its largest client, had warned in February that it would "collapse into insolvency" if the supply chain finance firm stopped providing it with working capital.
A spokesman said Liberty's customers and suppliers were supporting "self-help measures such as matching our current stock to customer orders" and that it was "working with customers to achieve terms that will bring in cash earlier".
"The group continues to work on solutions to provide additional working capital facilities to replace the funding gap left by Greensill, and (in the) meantime, is making use of the furlough scheme."
The spokesman declined to give details on the matching of stock to customer, terms that will bring in cash earlier or on additional working capital facilities.
Source:The Edge
