secure an alternative source of financing, GFG Alliance decided to refinance debts at its operations in Australian steel and mining business using the cash generated from its reviving business. As a result, the company pledged to resume operations at the facilities in Stocksbridge and Rotherham by injecting £50 million in cash into the business. This would mean that a “substantial majority” of jobs of a 1,000 British workers, who are currently on 80 per cent pay.
Previously, the group attempted to funds its Australian business through a deal with San Francisco-based White Oak Global Advisors, which failed to come through on time. Nevertheless, the revival in operations in the Trans-Tasman generated profits totalling A$729 million (£391 million) this year, a sharp increase from A$106m in 2020. This enabled the group to provide cash for the refinancing.
“The funding we are injecting to Liberty Steel UK puts it in a strong position for business transformation and debt restructuring,” Jeffrey S Stein, Liberty Steel’s chief restructuring officer, said, adding that the conglomerate’s global refinancing efforts will now be redirected to its operations in eastern European where a significant number of new lenders are expressing interest to refinance the company’s steel assets.
According to Liberty, the aforementioned £50 million would fund the restarting of the core electric arc furnace in Rotherham, as well as support the plant in Stocksbridge, which makes steel components for the aerospace and energy industry.
