Liberty rides sector upcycle towards turnaround

Bolstered by strong demand and record prices for steel, iron ore, and aluminium in global markets, alongside improvements in systems and operations, Liberty Steel group, owned by Sanjeev Gupta, is now on a turnaround path being overseen by a Restructuring and Transformation Committee.

“Our core markets in steel, aluminium, and iron ore are performing beyond expectations, bolstered by high demand and record prices. This in turn has led to our core assets achieving strong financial results. While there remains much to do, we are pleased with the progress made to date and confident in the resilience of the business going forwards,” Jeffrey S. Stein, Chief Restructuring Officer (CRO) said in a release.

“Much remains to be done, but we believe that we are now making rapid progress in building faith with our creditors and other stakeholders through our restructuring plan. We are moving with significant momentum towards a profitable, restructured and focused business capable of delivering our Greensteel vision and strong returns,” Sanjeev Gupta said.

Restructuring moves

♦ Activity is underway to complete Liberty Primary Metals Australia’s refinancing, as global refinancing efforts continue.

♦ At Alvance, a strategic deal cementing a long-term commercial relationship with two of the largest trading houses in the world has been agreed. The deal involves the supply of the raw material requirements of Dunkirk and Duffel, assistance in the marketing of products and provision of hedging facilities. Under the agreement, Alvance’s debt will be refinanced allowing creditors to be repaid. GFG expects the agreement to be finalised shortly once the reservations of one of the businesses’ creditors over early repayment has been resolved.

♦ GFG reached an agreement with Tata Steel, bringing to an end proceedings launched against Liberty Speciality Steels, Liberty House Group Pte, and Speciality Steel UK earlier this year.