UK's anti-fraud agency launches GFG Alliance investigation over Greensill deals

The U.K. Serious Fraud Office launched an investigation of metals and energy group GFG Alliance Ltd. and its financing arrangements with Greensill Capital (UK) Ltd., a major lender of the company that recently collapsed into insolvency.

The anti-graft agency will investigate "suspected fraud, fraudulent trading and money laundering" related to GFG Alliance's business and financing dealings, it said in a May 14 news release.

In early March, Greensill filed for administration in the U.K. after falling into "severe financial distress." Greensill had reportedly provided GFG Alliance with $5 billion in loans, which the Sanjeev Gupta-owned company sought to refinance following Greensill's collapse.

In early May, GFG Alliance secured A$430 million in refinancing for its Australian steel and coal operations, while U.K.-based subsidiary Liberty Steel Group formed a new committee to lead a restructuring of operations.

GFG Alliance said it will fully cooperate with the investigation, according to a same-day Reuters report.