“Upon appointment the liquidators’ immediate focus would be to work constructively with all key stakeholders (including employees, customers, suppliers, unions, creditors, and government) to stabilise operations while undertaking an urgent review of the financial position, trading outlook, and funding requirements of the underlying businesses.”
“As part of this process we will be assessing all options capable of providing long-term going concern outcomes for the businesses,” Mr Crawford said.
The potential liquidation of the entity that owns Whyalla will come just five years after the mill’s former owner Arrium was plunged into administration.
Credit Suisse has already appointed McGrathNicol as a receiver to Greensill’s Australian parent company to recover a bridging loan it provided to Greensill that was secured by shares in the local Greensill company.
Last month, Greensill’s administrators from Grant Thornton told a creditor’s meeting the company could face as much as $5 billion in claims from creditors, including a cohort of German banks, as administrators raised the prospect of the once high-flying group heading into liquidation.
Grant Thornton also indicated at the hearing that Greensill could also be headed for liquidation with no rescue plan being prepared and the sale process already failing to find an appropriate buyer for Greensill’s operating business.
In a statement released on Tuesday evening, Mr Gupta’s GFG Alliance said any proceedings brought on behalf of Credit Suisse would be vigorously defended.
“GFG Alliance’s Australian Mining and Primary Steel (MPS) business, which includes Onesteel Manufacturing Pty Ltd and Tahmoor Coal Pty Ltd, does not conduct any financing with Credit Suisse and has not sold receivables to Credit Suisse. We do not propose to comment on legal proceedings further.”
“GFG Alliance is in constructive discussions with Grant Thornton, Greensill’s administrators, and other stakeholders to negotiate a consensual and amicable solution on the way forward, which is in the best interests of all stakeholders. MPS is well advanced in preparations to refinance its Greensill facilities in the very near term.”