GFG Alliance has announced a debt restructuring agreement for LIBERTY Primary Metals Australia which provides the clarity and stability for Whyalla’s integrated steelworks and mining operations and a clear recovery plan for creditors.
GFG and Credit Suisse Asset Management (CSAM) have today agreed to a debt restructuring for LIBERTY Primary Metals Australia (LPMA), which comprises its integrated mining and primary steel business at Whyalla and its coking coal mine at Tahmoor. The deal provides a stable financial platform for GFG’s operations in Whyalla and Tahmoor.
The LPMA business has registered record-breaking performances following its operational efficiency drive, continuous improvement initiatives and favourable market conditions underpinned by strong investment in infrastructure. Continued strength in the steel and coking coal markets has helped to offset the recent correction in iron ore prices.
The strength of the LPMA business will enable it to make a substantial upfront payment to Greensill Bank and CSAM, which has been closely involved in GFG’s work to refinance and restructure its portfolio following the collapse of GFG’s main lender Greensill Capital.
Under the agreement, which represents the best of several options open to LPMA to achieve refinancing, the balance will be paid in instalments to CSAM and Greensill Bank, through the amended maturity date of June 2023.
The debt restructuring announced today follows LPMA’s record-breaking performances which saw the business grow revenues from A$1.96bn in FY 2020 to A$2.52bn in FY 2021, and EBITDA grow from A$106m in FY 2020 to A$729m in FY 2021. The forecast for LPMA remains strong.
Executive Chairman of GFG Alliance Sanjeev Gupta said: “through the hard work and determination of our team, our Australian integrated operations are now profitable and performing the best they have for many years.”
“I’d like to thank all our stakeholders – government, union representatives, customers, suppliers and of course our employees and the local community – for the support they’ve shown GFG Alliance as we managed our way through the challenges created by the Greensill collapse. I care deeply about this community and remain committed to our long-term vision to transform Whyalla into a modern GREENSTEEL hub.”