British ministers reject request for rescue of Sanjeev Gupta – FT

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FILE PHOTO: Sanjeev Gupta of Liberty Steel smiles outside the company’s Liberty Steel processing plant in Dalzell, Scotland, Britain April 8, 2016. REUTERS / Russell Cheyne

(Reuters) – British ministers have rejected a request by mining tycoon Sanjeev Gupta for an emergency loan of 170 million pounds to prevent his group, GFG Alliance, from collapsing, the Financial Times reported on Sunday.

The FT said Gupta was working on plans to secure new loans against parts of the group outside the UK, adding that it also aimed to generate cash through an accelerated sale of goods.

GFG, a holding company for Gupta’s assets, has been the biggest recipient of funding from Greensill, a UK finance company that filed for insolvency this month.

The UK government responded to Gupta to formally reject the request last week over multiple concerns, the FT reported, citing people familiar with the situation.

GFG and the government did not immediately respond to a Reuters request for comment on the report.

The conglomerate was in talks with directors of its former backer Greensill over a so-called standstill deal.

Last week, Reuters reported that GFG secured a loan from Trafigura in 2018 by entering into a six-year deal to sell aluminum to the commodities trader at below market prices.

Reporting by Derek Francis and Vivek Vishal in Bengaluru; Editing by Alex Richardson and Philippa Fletcher

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