Liberty Steel closes in on deal with creditors
LIBERTY Steel has signed an outline of a deal that could see its creditors recoup at least some of their money while allowing it to keep going.
Sanjeev Gupta’s under-pressure industrial group said the deal – although it is merely ‘a term sheet subject to contract on an agreement in principle’ – could allow it to restructure the debt that it borrowed through Credit Suisse and now collapsed lender Greensill.
The deal was hailed as a ‘major step in the group’s refinancing’, but the business did not reveal any details of what it contained.
Sources yesterday told the Financial Times that Liberty’s lenders could be repaid up to 55pc of what they are owed, but the final figure is expected to be significantly less.
The deal is still subject to approval by the firms involved. But the creditors have halted their winding-up petitions against Liberty, which has been fending off such applications for months.