The future of GFG Alliance’s Whyalla operations is officially secure, with refinancing now finalised.
Whyalla Steelworks owner, GFG Alliance, has taken a significant step forward on the path to recovery following the collapse of its main lender Greensill in March, according to a company statement.
GFG and Credit Suisse Asset Management (CSAM) have agreed to a debt restructuring for LIBERTY Primary Metals Australia (LPMA), which comprises its integrated mining and primary steel business at Whyalla.
Following the creation of LIBERTY Steel Group’s Restructuring and Transformation Committee (RTC) in May this year, along with LPMA’s record-breaking performances and favourable market conditions, GFG will be able to make a "substantial" upfront payment to Greensill and Credit Suisse.
Chief Restructuring Officer, Jeffrey S. Stein, says, “I’m pleased to report a significant advance in GFG Alliance’s global restructuring. The debt restructuring, we have agreed for LIBERTY Primary Metals Australia gives the business clarity and stability and secures a clear recovery plan for creditors.”
Under the agreement, the balance will be paid in instalments to Credit Suisse and Greensill Bank, through the amended maturity date of June 2023.
Mayor of the Whyalla City Council Clare McLaughlin says this announcement brings confidence to the town, and steelworks employees should be proud.
"The workers who have done an amazing job, they're the ones who deserve a pat on the back. They've turned that plant around and made it profitable, and brought in all the efficiencies, so it's a really good win for all of them but also, more importantly, for the city of Whyalla," says Ms McLaughlin.
LPMA’s record-breaking revenues grew from $1.96 billion in the 2020 financial year to $2.52 billion in 2021.
The forecast for LPMA remains strong due to its ongoing operational efficiency drive, continuous improvement initiatives and favourable market conditions, underpinned by strong investment in infrastructure.
Chairman Sanjeev Gupta says his Australian integrated operations were now profitable and performing the best they had for many years.
Earlier this year Greensill collapsed into insolvency, putting GFG Alliance at risk.
Photo: By Spencer Gulf Broadcasters