Citibank Begins Applications for GFG Australian Assets

Citibank Group has begun an application with Australia's Supreme Court of New South Wales to wind up two businesses run by the steel magnate - Sanjeev Gupta, as part of insolvency measures.

The London branch of Citibank lodged an application  to wind up OneSteel Manufacturing in South Australia and Tahmoor Coal in New South Wales, according to the court. A directions hearing is scheduled for May 6.

The application comes as Credit Suisse begins actions in London and Australia to recoup losses from supply chain provider Greensill Capital, which has applied for insolvency, after providing funding to Gupta’s privately-held GFG Alliance, among others. When it comes to the court case, GFG said it did not conduct any financing with Credit Suisse.

"GFG Alliance expects the confirmatory due diligence to be complete within weeks before a final offer is accepted. GFG Alliance is in constructive discussions with Grant Thornton, Greensill’s administrators, and other stakeholders to negotiate a consensual and amicable solution on the way forward, which is in the best interests of all stakeholders”, the company said in a statement, further adding: "The Australian businesses are performing well and generating positive cash flow, supported by the operational improvements we’ve made and strong steel and iron ore markets”.

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