- June 13, 2022
- Press Releases
LIBERTY reaches Standstill Agreement with its largest creditor, Greensill Bank
LIBERTY Steel Group (“LIBERTY”) has today entered into a Standstill Agreement (“the agreement”) with Greensill Bank, its largest creditor, on the debt facilities relating to its European steel businesses.
Under the agreement all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to LIBERTY in 2019.
The agreement shall enable LIBERTY to develop a longer term sustainable financing structure. The agreement is valid until 31st October 2022 and may be extended until the end of 2022.
Detailed due diligence and information exchange continues between the two parties.
A LIBERTY Steel Group spokesperson said:
“Today’s standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders.
We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds.”
Ajay Aggarwal, President LIBERTY Steel Group Europe and Chairman of the LIBERTY Ostrava Board of Directors, said: “Our core global operations continue to perform solidly, with LIBERTY Ostrava doubling its turnover to CZK 56.5 billion, achieving EBITDA of CZK 8.1 billion and a net profit of CZK 6.1 billion. I believe this shows the results of the turnaround progress we have made at LIBERTY Ostrava, which achieved the best financial, operational, and management results since we acquired the business in 2019.”
Sandip Biswas, Chief Investment Officer for GFG Alliance and Interim CEO for LIBERTY Primary Steel and Mining, added: “LIBERTY Ostrava’s strong performance in 2021 was driven by capitalizing on the favourable market conditions, achieving record-production volumes and increasing the quality of its products and service. LIBERTY Ostrava’s improved commercial and operational structure will help the business navigate the challenges of 2022, including the impact of the war in Ukraine, higher working capital needs, increased costs of distribution and logistics and continuing high levels of imports from outside the EU. Although, the business is operating in a more challenging economic and geopolitical context, we remain confident that LIBERTY Ostrava will overcome the current market challenges.”
Further information from::
|Barbora Černá Dvořáková
Head of communications
|+420 606 774 firstname.lastname@example.org|
Head of Communications – Europe
|+44 (0) 7767 498 195||Patrick.email@example.com|
Note to the editors:
GFG Alliance is a collection of global businesses and investments owned by Sanjeev Gupta and his family. The Alliance is structured into three core industrial pillars; LIBERTY Steel Group, ALVANCE Aluminium Group and SIMEC Energy Group, independent of each other yet united through shared values and a purpose to create a sustainable future for industry and society. GFG Alliance employs 35,000 people, across 10 countries and has revenues of USD $20bn. GFG Alliance is a leader in sustainable industry with a mission to become Carbon Neutral by 2030 (CN30).
|Liberty Steel Group|
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