Sanjeev Gupta closes in on £200m loan for UK steelworks

Sanjeev Gupta has been thrown a potential lifeline for his British steelworks after agreeing terms on a £200m loan from White Oak, a US-based private finance group.

The metals tycoon, whose group GFG Alliance has been scrambling to find alternative finance after the collapse of its main lender Greensill Capital in March, still needs to secure approval from Credit Suisse for the transaction.

The Swiss bank has a claim on the assets of GFG’s Liberty Steel, the UK assets, through financing originally provided by Greensill that was repackaged into its funds, according to two people familiar with the situation. 

The £200m loan would provide an injection of much-needed working capital into Gupta’s speciality steel plants in Yorkshire and allow them to return to full production.

The UK government in March rejected a plea by Gupta for more than £170m in emergency funding while the group restructures its debt, citing concerns that the money might not stay in the UK.

White Oak, which is based in California, has also stepped in to refinance Gupta’s Australian steel assets and associated mines.

GFG and White Oak declined to comment.