Sanjeev Gupta’s U.K. steelmaking business has reached terms on a 200 million-pound ($278 million) loan from White Oak Global Advisors LLC.
The loan will be subject to due diligence and the approval of Credit Suisse Group AG, according to a person familiar with the matter. The Swiss bank has a claim on the business through financing provided by Greensill Capital and repackaged into its funds.
The working capital facility would allow Gupta’s steel businesses to increase production and take advantage of record steel prices, the person said, asking not to be identified because the matter is private.
The loan would be a potential lifeline for Gupta’s GFG Alliance, which is fighting for survival after the collapse of its biggest lender Greensill Capital. Earlier this week, Gupta agreed another loan for his primary steel business in Australia, which includes the Whyalla mill.
White Oak declined to comment.
Gupta’s U.K. steel business owes Greensill $769 million, according to a March 2021 GFG presentation seen by Bloomberg. The loan from White Oak would not be used to refinance that debt, the person familiar said.