Credit Suisse applies to wind up OneSteel

Posted on 07 April 2021

Citibank, on behalf of Credit Suisse, has filed an application with the New South Wales Supreme Court to wind up two companies, both part of Sanjiv Gupta’s GFG Alliance. OneSteel owns the Whyalla steelworks and Tahmoor Coal has a coking coal deposit in eastern Australia, Kallanish notes.

The first hearing is expected on 6 May. The move could see both companies handed over to liquidator McGrathNicol. After Gupta purchased Whyalla and other assets in Australia he laid out a vision of investment in greener steelmaking and energy capacity to make the industry both more profitable and sustainable. The financing for his acquisitions, however, has come undone as Credit Suisse pulled its funds from Gupta’s chief financer Greensill Capital.

In a statement, GFG Alliance says: “GFG Alliance’s Australian Mining and Primary Steel (MPS) business, which includes Onesteel Manufacturing Pty Ltd and Tahmoor Coal Pty Ltd, does not conduct any financing with Credit Suisse and has not sold receivables to Credit Suisse. We do not propose to comment on legal proceedings further.”

It adds: “The Australian businesses are performing well and generating positive cash flow, supported by the operational improvements we’ve made and strong steel and iron ore markets.”
McGrathNicol has said that the goal would be to keep the businesses running if it takes over as liquidator.

Source : Kallanish