GFG Alliance in More Trouble as UK Rejects Bailout Request

SEATTLE (Scrap Monster): The UK government has rejected a bailout request from Sanjeev Gupta-owned GFG Alliance.

The company had requested a bailout package worth approximately $234 million, saying that the bailout will be of great help to the company, which is struggling for finances, following the collapse of Greensill Capital-GFG’s lender. The package was rejected by the British lawmakers on concerns over the structure and corporate governance of the company and over fears that the bailout money may be used to finance its struggling businesses in other countries as well.

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However, Gupta claimed that almost all businesses overseas are doing well and faces no financial crunch. They continue to perform well and generate positive cash flows. It is only the UK business that has taken a big hit, he added. Liberty has already initiated steps to provide additional working capital facilities to fill the funding gap.

The company employs nearly 5,500 people in the UK, out of which almost 3,000 are employed at Liberty Steel. Although the company is committed to take all possible actions in support of these employees, it fears that thousands of these jobs may be at risk without government support.