Greensill Capital, the major backer of Sanjeev Gupta’s GFG Alliance steel operation in the UK, has gone into administration under ‘severe financial distress’ as funds are withdrawn
Administrators from Grant Thornton have been appointed to handle the insolvency proceedings.
A spokesperson for the joint administrators at Grant Thornton UK LLP said: ‘Chris Laverty, Trevor O’Sullivan and Will Stagg of Grant Thornton UK LLP were appointed as joint administrators of Greensill Capital (UK) Limited and Greensill Capital Management Company (UK) Limited on 8 March 2021 (the Joint Administrators).
‘The Joint Administrators are in continued discussion with an interested party in relation to the purchase of certain Greensill Capital assets. As these discussions remain ongoing, it would be inappropriate to comment further at this time.’
One of its major funders, Credit Suisse, withdrew £72bn in funds, putting the company under pressure.
Greensill chairman Maurice Thompson and two board directors, chief operating officer David Brierwood and Patrick Allin have also resigned.
GFG Alliance owns Liberty Steel, a UK steel conglomerate with over 3,000 staff and nine sites in the UK. Unions will meet with Gupta this week to discuss the impact on the UK workforce.
A spokesman for Community union said: ‘We will be meeting with Liberty early this week to seek assurances. We take confidence from the fact that this a vital strategic business with a world-class workforce producing the best steels money can buy.’
Greensill is a provider of working capital finance for businesses and people globally. It was founded in 2011 by Lex Greensill and the company is headquartered in London with offices in New York, Chicago, Miami, Frankfurt, Bremen, and Sydney, with more than 800 specialists worldwide.
Greensill provides supply chain finance to customers across Europe, North America, Latin America, Africa and Asia and works with a number of banks and institutional investors to provide funding.