GFG's Liberty Steel in debt standstill agreement with major lender – Reuters

GFG Alliance Ltd.'s Liberty Steel Group signed a standstill agreement with major creditor Greensill Bank AG to pause all enforcement actions on debt facilities for Liberty's European operations until the end of October, with a possible extension until the end of 2022, Reuters reported June 14.

GFG Alliance has been working to refinance debt and restructure its steel businesses following the collapse of major lender Greensill Capital (UK) Ltd.

In May, the U.K.'s Financial Reporting Council launched investigations into audits by accounting firm King & King on the financial statements of four companies under ownership of the GFG Alliance conglomerate, including Liberty Speciality Steels Ltd., Alvance British Aluminium Ltd., Liberty Steel Newport Ltd. and Liberty Performance Steels Ltd.

A representative for GFG Alliance declined to comment when the U.K.'s Serious Fraud Office began an investigation in May 2021, but the company maintained it had not committed any wrongdoing and vowed to fully cooperate, according to an internal memorandum seen by Reuters.

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