By John Miller
ZURICH (Reuters) – Credit Suisse and Sanjeev Gupta-owned GFG Alliance reached a standstill agreement on Australian steel and coal mining assets, GFG Alliance said on Wednesday, as the companies continue to address fallout from Greensill Capital’s collapse.
“GFG Alliance and Credit Suisse Asset Management (CSAM) have agreed a formal standstill agreement with regard to Liberty Primary Metals Australia (LPMA),” GFG said in a statement.
“The six week standstill agreement will enable GFG Alliance to complete full refinancing of LPMA, expected to complete within this time frame.”
Credit Suisse declined to comment on the significance of this pact to efforts to recover money from its suspended Greensill-linked supply chain finance funds.
The Zurich-based bank had previously disclosed some $2.3 billion worth of loans exposed to financial and litigation uncertainties within the funds, with some $1.2 billion of its assets related to GFG Alliance.
The standstill agreement covers assets including the integrated and primary steel business at Whyalla, Australia, and its coking coal mine at Tahmoor, GFG said in the statement.
It said Gupta and the GFG restructuring committee continue to make “good progress” with creditors.
“GFG Alliance and CSAM continue to work hard towards resolving GFG Alliance’s remaining exposure with CSAM-Funds following the collapse of Greensill Capital,” it said.
(Reporting by John Miller; editing by Jason Neely)
