[ad_1]
Sanjeev Gupta is in talks with Glencore to extend his credit to his European aluminum business, a deal that would allow the steelmaker to keep one of his best assets.
The GFG Alliance, which operates 35,000 people from the UK to Australia, is struggling remodeling and restoring his debt to Greensill Capital, who borrowed a large loan.
Greensill and the creditors had it $ 5bn visible at the GFG where the financial group was formed in March. GFG is also available is being investigated in the UK because of alleged fraud, leading to the temptation to make new money. The GFG has agreed to this study.
Glencore is negotiating a $ 500m loan repayment to Alvance, Gupta’s aluminum business with assets in France and Belgium, according to two people familiar with the matter.
A partnership with a London-based mining and retailer may allow Gupta to retain ownership, contrary to the original idea of the American-based American Industrial Partners (AIP), which seeks to purchase the property.
The deal could be a boon to Glencore’s aluminum business if it could acquire steel, providing the FTSE 100 pipeline company that could sell it through its own hands.
The Glencore move comes as aluminum prices have risen by about 25% this year to $ 2,500 tons as the global economy begins to recover from the epidemic. Lightweight steel is used for everything from drink cans to cars.
Alvance gemstone and Dunkirk smelter, the largest in Europe. Liberty acquired a 280,000 tonne plant annually from Rio Tinto in 2018 for $ 500m. GFG estimates that Alvance had a selling price in the north of $ 1bn, based on its expected income of more than $ 150m by 2021, according to a GFG report from March.
The aluminum unit at Glencore, which already buys steel at Liberty, is operated by Robin Scheiner. Banks say they are keen to grow their business and have been looking for deals. He met Gupta in Zurich this year where he discussed a number of issues, albeit without success, according to people familiar with the matter.
Glencore declined to comment. The GFG said it was “continuing to focus on restructuring and reimbursing its businesses following the collapse of Greensill Capital. Alvance’s reputation is improving, with the help of a strong market.”
A partnership with Glencore could repay several loans to Alvance’s business. The Dunkirk aluminum smelter owes $ 260m against it, while the Alvance mill at Duffel owes another $ 59m. The business also has a $ 131m riskier loan from the company from BlackRock, and $ 73m in money from Greensill.
A group of banks initially granted loans to Dunkirk, along with a colleague of Glencore Trafigura. The Geneva retailer is still in debt, as banks sold their shares in the AIP this year, while an independent New York-based company sought to seize assets.
Trafigura also signed an aluminum deal with Gupta when it granted a loan to Dunkirk at the end of 2018. Alvance has another $ 114m loan from conflicts and original suppliers of Dunkirk and Duffel goods.
[ad_2]
Source link
