https://www.insider.co.uk/news/steel-group-backer-files-administration-23633262
>"Liberty Steel is the UK's third-largest steelmaker, employing 3,000 people at 11 sites, with another 2,000 people in engineering businesses within the group.
>It owns several sites across the UK, including a plant at Dalzell in Scotland which manufactures steel plate.
>In a court filing, Greensill said Gupta's operations were in "financial difficulty" and defaulting on debt.
>GFG stated: “Our operations are running as normal and our core businesses continue to benefit from strong market conditions generating robust sales and cashflows.
>"Our operational efficiency programme has improved profitability and we are making progress with financial institutions that can help to diversify our funding.”
>Efforts by the steel group to disentangle itself from its financier were made more complicated because Greensill has made loans to multiple entities within GFG, secured against sales made within the group.
>Last week, the Bank of England intervened with Gupta’s Wyeland Bank, ordering it to repay deposit holders. >Gupta had acquired what was then Tungsten Bank from Tungsten Corporation for £30m in 2016.
Liberty Steel's Sanjeev Gupta likes to cultivate politicians…
>A spokesman for steel union Community said: “We will be meeting with Liberty to seek assurances - we take confidence from the fact this is a vital strategic business with a world-class workforce producing the best steels money can buy.”
>Gupta is now looking at other funding avenues. However, without fresh capital there is speculation that it could lead to a fire sale of assets.
>Greensill provided Gupta with funding, effectively discount finance against invoices, to acquire often distressed and under performing assets from the likes of Tata, Arcelor Mittal and Rio Tinto.
>Many of Liberty Steel's assets were part of Tata Steel's UK business, until they changed hands for £100m in 2017.
>Gupta has also cultivated close relationships with politicians, including First Minister Nicola Sturgeon.
>Liberty is a major public sector supplier, including hydro-power contracts in Scotland and steel contracts for the Ministry of Defence. >The UK Government said it was "monitoring the situation closely".
Well this guy seems quite wealthy, has numerous interests including banks. So why the fuck would there be a call for the long suffering taxpayer to bail this guy out?
Well there's a conundrum.
Until you see how that liking for the "cultivation" of politicians goes…..
https://www.theguardian.com/business/2021/mar/26/british-business-bank-launched-probe-into-greensill-capital-before-collapse
see 2nd attached screenshot.
>"It suggests officials were raising red flags internally about Greensill’s lending practices months before its financial troubles started making national headlines in early March.
>The BBB’s own inquiry centres on the way Greensill used the 80% government-backed coronavirus large business interruption scheme (CLBILS) to lend tens of millions of pounds to Gupta’s GFG Alliance.
>Concerns first emerged about Greensill’s involvement in the scheme in October 2020 when the FT reported it had provided tens of millions of pounds worth of government-backed loans to two of Gupta’s companies, which employed just 11 people. Since then, it has emerged that Greensill loaned firms connected to Gupta an estimated £400m.
>External law firms have been drafted in to aid the BBB’s investigation, which is still ongoing, according to a source with knowledge of the matter. The question of who will be left responsible if wrongdoing is discovered has been complicated by Greensill’s collapse earlier this month.
>A separate audit is under way, involving all lenders accredited for the CLBILS, a sister scheme that lends to small and medium-size enterprises, and 100% state-backed bounce-back loans scheme. However, that review – conducted by KPMG – was planned and separate from the Greensill investigation.
>The British Business Bank did not confirm or deny the investigation was under way. A spokeswoman said: “All accredited lenders are subject to audit by the British Business Bank to ensure their compliance with scheme rules.
>“If serious non-compliance is identified, the bank is entitled to take remedial action. Such action might include termination of the guarantee agreement or withdrawal of the guarantee. It would not be appropriate to comment on individual cases given commercial sensitivities.”