London, March 15 (AFP/APP): Steelmaking giant GFG Alliance, owned by Indian-British billionaire Sanjeev Gupta, said Monday it will pause some UK activities to preserve cash following the collapse of corporate finance firm Greensill.
Gupta’s sprawling steel empire, which had been Greensill’s biggest customer, has 35,000 staff worldwide, including 5,000 in Britain where its Liberty Steel division is based. “Some UK businesses will be operating intermittently, which can and will be achieved without compromising the condition of the plants,” GFG Alliance said in a statement.
The group added that it is “working closely” with trades unions and is making use of the UK government’s furlough scheme, which is paying the bulk of wages for millions of private-sector workers during the coronavirus pandemic. Greensill specialised in short-term corporate loans via a complex and opaque business model that ultimately sparked its declaration of insolvency one week ago.
The finance firm crashed last Monday into administration, or the process whereby outside expertise is called upon to minimise job losses, amid mounting doubts over its assets. GFG meanwhile also operates three large sites in France, comprising Ascoval steelworks, Hayange rail plant and an aluminium facility in Dunkirk.
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