Sanjeev Gupta reassures Premier over Whyalla steelworks

British businessman Sanjeev Gupta has reassured Premier Steven Marshall over the future of the Whyalla steelworks following the collapse of his main financial backer.

GFG Alliance chairman Sanjeev Gupta has reassured Premier Steven Marshall over the future of the company’s Whyalla steelworks as the British businessman scrambles to refinance his global mining and metals empire.

Speaking to the media on Wednesday, Mr Marshall said he had spoken to Mr Gupta in recent days about the financial collapse of financier Greensill Capital, which GFG was relying on for its planned $1 billion transformation of its Whyalla operation.

“I did speak to Sanjeev Gupta in the last couple of days, and there was a further meeting between members of our task force (Steel Task Force) and GFG yesterday,” Mr Marshall told reporters on Wednesday.

“What I can say is that GFG are confident that they are going to be able to refinance their organisation – that was the key message that I received from Sanjeev Gupta.

GFG Alliance chairman Sanjeev Gupta during a visit to the Whyalla steelworks in 2017. AAP Image/David Mariuz

“Obviously our task force has been boosted in terms of its personnel, working very co-operatively with GFG. It’s still an anxious time for people in Whyalla – people who are involved with this business.

“Obviously Greensill going into administration is putting enormous pressure on that business but we are continuing to work with GFG and we’re hopeful for a good outcome.”

The State Government’s Steel Task Force was set up in 2015 just as the Whyalla steelworks began hitting financial strife under then owner Arrium.

The task force is headed up by Adelaide businessman Bruce Carter - an insolvency and restructuring expert who was a founding partner of Ferrier Hodgson.

GFG, which bought the Whyalla steelworks and iron ore operations out of administration in 2017 for a rumoured $700m, is seen as most vulnerable to Greensill’s collapse, with the financier backing Gupta’s rapid global expansion in recent years.

GFG has appointed a team of advisers including PJT Partners, Alvarez & Marsal and Norton Rose Fulbright, to support its refinancing efforts and negotiations with Greensill’s administrators Grant Thornton.

It came after Greensill was placed in administration earlier this month.

At the first creditors meeting on Friday, the company’s administrators hinted the collapsed financier was likely to be plunged into liquidation after creditors hit the Australian arm of its business for almost $4.8 billion in claims and it struggles to find a buyer for its assets.

A further report to creditors will be issued in about three weeks, with a second meeting scheduled for around April 22.