Sanjeev Gupta looking to hire senior restructuring expert for GFG Alliance

Sanjeev Gupta’s InfraBuild is one of Australia’s largest steel companies. Picture: iStock.

Sanjeev Gupta is understood to be in the market searching for a senior executive for his steel empire, and sources believe candidates with restructuring expertise are being targeted.

The understanding is that the executive would work across his GFG Alliance portfolio.

Many believe finding someone keen to take up the position could be a tough ask for the London-based businessman who remains under a cloud over the forced collapse of his Whyalla steelworks last month, when the South Australian government called in administrator KordaMentha.

DataRoom reported last week that suitors were starting to circle Mr Gupta’s InfraBuild business, which is the jewel in the crown, as expectations build that an eventual collapse is inevitable due to the large debts across his empire.

For the year to March 31, InfraBuild generated $411m in earnings before interest, tax, depreciations and amortisation, but they are believed to have fallen since then.

Its debt at March last year was around $1.5bn including leases and loans from related parties.

It is owed $156m by the Whyalla steelworks and bondholder FitzWalter Capital Partners, backed by former Macquarie executive Ben Brazil, is demanding an $800m immediate repayment from GFG Alliance.

Lenders have been trying to sell InfraBuild loans at 70c in the dollar, with the latest documents showing that part of the group posted an $81m half year loss.

Private equity firms are looking at the debt and one group considered in a position to take on such a high-risk investment is a local firm Gordon Brothers.

Platinum Equity looked previously at InfraBuild and no doubt would be watching.

InfraBuild’s steel distribution business is Australia’s largest processor and distributor of long steel products and produces 1.4 million tonnes of recycled steel across the country. It operates at more than 140 locations, including 26 recycling centres and 113 retail and distribution sites.