Liberty Steel closes in on deal with creditors that would keep firm afloat
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Liberty Steel strikes a deal that allows it to continue and creditors get some of their money back
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Liberty Steel has signed an outline of a deal that will allow creditors to get back at least some of their money while it can go ahead.
Sanjeev Gupta’s pressurized industrial group said the deal – while just “a term sheet subject to a contract in principle” – could allow the company to restructure debt it had borrowed through Credit Suisse and now collapsed lender Greensill.
The deal was hailed as a “significant step in the group’s refinancing,” but the company did not disclose details of its contents.
Under fire: Sanjeev Gupta’s industrial group said the deal could allow it to restructure debt it borrowed through Credit Suisse and now-collapsed lender Greensill
Sources told the Financial Times yesterday that Liberty’s lenders could be paid back up to 55 percent of what they owe, but the final figure is expected to be significantly lower.
The deal is subject to approval by the companies involved.
But creditors have dropped their bankruptcy petitions against Liberty, which has been fighting off such petitions for months.