Greensill Capital and Global Financial Crisis

You may not have heard of Greensill Capital as it is in an international financier, however it did have a global reach even to businesses in Australia. One of the largest Australian businesses that it funded was the Whyalla steelworks which is ultimately owned by Sanjeev Gupta through a UK company called GFG Alliance. It has been reported that across the entire group of companies owned by Mr Gupta, Greensill Capital is owed in excess of $5.8billion. The Australian Financial Review reported on 29 March 2021, that “the UK Government rejected a direct plea by Mr Gupta for more than $310 million to help with working capital.” This plea shows that all is not well financially with GFG Alliance.

Why is this important?

As Greensill Capital has gone into Voluntary Administration in the UK, the voluntary Administrators will be calling in the loans. What this means is that the voluntary Administrators will be sending all the companies that owe Greensill Capital money letters of demand in order to formalise and commence the collection process.  It should go without saying that the Voluntary Administrators may commence legal action against those companies that cannot pay the demand.

If GFG Alliance is unable to refinance the loans from Greensill Capital, it may kick off another Global Financial Crisis.

How can we help you?

So, if your business was funded by Greensill Capital we can help you to find an alternate source of funding to payout the incoming demand from the Voluntary Administrators.

If your business’s was solely reliant upon work from a steelworks under the GFG Alliance brand, we can explore options for you to see if your business can not only survive but thrive without the need for business solely from GFG Alliance.

Contact us today by email [email protected] for a confidential conversation about your unique circumstances.