ArcelorMittal SA will ask in advance to supply steel to GFG Federation Sanjeev Gupta amid fears about the group’s financial situation.
The company will change its payment terms for shipments to the termination plants that Gupta bought from it in 2019, according to someone familiar with the matter. It is likely to put more pressure on GFG’s cash flow as it seeks alternative funding following the collapse of its largest lender, Greensill Capital.
It follows a brief ban on delivery by the steel giant to some GFG plants, the man said. A spokesman for the company’s Liberty Steel unit said there was a “temporary issue” with one of the suppliers for some of their sites, but said it had been successfully resolved using our dispute procedures. normal commercial. “
ArcelorMittal is working constructively with Liberty Steel “to ensure that the contract continues,” he said in a statement.A spokesman for GFG said the company would not comment on commercial arrangements.
The fall of Greensill has raised questions about the financial health of the Gupta businesses, which were the largest buyer. GFG told Greensill in February that it would be bankrupt without its funding, the funding company said in a filing. Workers’ unions have since raised concerns about the security of 35,000 jobs across the sprawling empire of Gupta which has operations in 30 countries.
GFG is on PJT Partners Inc. and Alvarez & Marsal Inc. hired to help him secure new funding, Bloomberg reported Wednesday. Their first action is to stop debting on Greensill’s $ 5 billion GFG debt and other money that bought its financial results, an acquaintance of the deal said this week.