Greensill administrators still owed nearly £500m from GFG Alliance

The collapsed supply chain finance firm’s administrators Grant Thornton said in a report on Sunday that the firm is still in talks with several debtors – including GFG Alliance – regarding outstanding balances owed.  

It went on to warn that, if the firm is unable to recover the funds owned, it would “continue to consider the recovery options that are available under the security and guarantees granted by GFG in connection with the GFG programmes.” 

At the time of its collapse in 2021, it was reported Greensill was owed £3.7bn from GFG Alliance, including the £472m figure to its UK arm Greensill Capital.  

Speaking to City AM, a GFG Alliance spokesperson said: “Liberty Steel Group has signed a new framework agreement with its major Greensill creditors.  

“The new framework comes after achieving major milestones in raising new capital including a successful $350m bond issue through Jefferies LLC and a $350m Asset-Backed Term Loan Through Blackrock and Silver Point Finance.  

“Execution of the framework agreement will build on improvements made across the group since the collapse of Greensill Capital.”

 
All this comes just weeks after the Insolvency Service confirmed it had “commenced director disqualification proceedings” against Greensill founder Lex Greensill which would see him disqualified from running companies for up to 15 years.