STEEL tycoon Sanjeev Gupta is in a dispute with Grant Thornton, the administrators of collapsed lender Greensill Capital, over control of InfraBuild, an Australian steel manufacturer, processor, and distributor valued at £3 billion.
The dispute concerns a mortgage held by Grant Thornton over Gupta’s shareholding in InfraBuild. Gupta’s Gupta Family Group (GFG) Alliance, which includes Liberty Steel and Alvance Aluminium, has faced financial difficulties since the collapse of its main lender, Greensill, in March 2021, reported The Times.
Control of InfraBuild is seen as key to GFG’s future. The company could sell InfraBuild or use it to secure new funding to repay creditors.
Grant Thornton has been seeking to recover money owed by GFG to Greensill, which will then be returned to Greensill’s creditors. GFG still owes nearly $600 million, according to Grant Thornton’s latest report from October.
A spokesman for GFG said, “GFG has always maintained that we do not recognise the share charge, which is disputed and has no legal basis.” Sources close to the administrator told The Times that Grant Thornton retained legal security over InfraBuild’s shares.
InfraBuild traces its origins to BHP’s Newcastle steelworks, established in 1915. It was later acquired by Gupta in 2017.
Gupta is under investigation by the Serious Fraud Office for suspected fraud, fraudulent trading, and money laundering related to GFG’s financing, including from Greensill.
An aerial view of the British Steel Scunthorpe site on September 13, 2024. (Photo: Getty Images)
