Steel tycoon Sanjeev Gupta is holding “urgent” talks to try and stave off the nationalisation of his plants in Rotherham and Bolton.
Speciality Steel UK, part of Mr Gupta’s GFG Alliance, told the High Court on Wednesday that it was holding “urgent meetings” with an unnamed investor interested in taking over the business.
The company, which makes speciality products, is facing the threat of being liquidated after a group of disgruntled suppliers that are owed money took Speciality Steel to court.
Thought this would all have been done and dusted by now. But there’s an awful lot of….well, modesty doesn;t allow meto say what awful lot of, umm, effort perhaps…..that can be done to delay. The base problem is:
Mr Gupta’s plans for restructuring Speciality Steel collapsed after he failed to secure backing from the creditors of Greensill Capital, the troubled finance provider he had previously worked closely with.
“Worked with” is a synonym here for “borrowed from” and not necessarily wholly and fully repaid.
So there’s a hole in the financial structure, that borrowing which used to be on offer, is now owed back to those creditors. Some effort can be put into delaying payment to other suppliers in order to stretch cashflow etc but as above there are obviously limits to that.
As I say, I thought this would all have been done and dusted by now. Apparently not.
Gupta certainly has a talent for bullshit.
Remind me never to have any sort of deal with him. He’d eat me for breakfast with no trouble at all.
It looks to me that Specialty Steel is broke. So call in the receivers, get them to negotiate with this mysterious “investor”.
There’s a hole in your bucket, dear Sanjeev, dear Sanjeev.
Comments are closed.