White Oak’s deal with GFG Alliance draws closer
The schedule to finalize the refinancing deal of more than $ 430 million for Whyalla and Tahmoor continues to be extended.
On June 23, GFG announced a formal standstill agreement with Credit Suisse for the next six weeks, which protected Whyalla steelworks and Tahmoor’s operations from any further decision by the Swiss financial giant to liquidate them while an agreement separate refinancing is nearing completion.
White Oak’s proposal is a more modest deal as part of a larger push by the GFG Alliance to attempt to replace roughly $ 6 billion in global funding for the GFG empire that previously came from Greensill Capital, which broke down. collapsed in early March.
It comes as Greensill Capital’s UK operations have been granted approval to freeze the assets of the supply chain finance firm in the US, and the firm’s deadline to respond to an action. Bluestone Resources’ lawsuit was extended until December.
The UK branch of the collapsed Lex Greensill company filed for bankruptcy in the US in August to protect its assets at Bluestone Resources, a US coal miner who claims to have been one of Greensill Capital’s three biggest clients.
Bluestone Resources claims the Chapter 15 filing was filed just before the September deadline to respond to its lawsuit and was “timed to prevent Greensill Capital UK from having to file a plea in response to the action. Bluestone ”.
The US bankruptcy court this month recognized the UK administration of Greensill Capital as a foreign proceeding.
Meanwhile, the US District Court, which hears Bluestone Resources’ complaint against Mr Greensill, former Vice President Roland Hartley-Urquhart and Greensill Capital UK, has given defendants until December 20 to respond.
Bluestone Resources did not oppose the Chapter 15 filing and told the court that while it would seek a “consensual path” to pursue its claims over the next few months, it would continue its legal actions if it failed. not to an agreement.
Bluestone Resources complaint alleges that Greensill Capital UK, Mr. Greensill and Mr. Hartley-Urquhart “used their business relationship with Bluestone to help prime the pump for the defendants’ larger fraudulent activities, which the Bluestone plaintiffs have said. learned since, spanning several countries and led to the collapse of the Greensill entities and the ouster of its leaders ”.
It also alleges that Greensill Capital UK, which loaned $ 850 million ($ 1.2 million) to the US coal miner, demanded that Bluestone Resources make payments directly to Credit Suisse in late 2020 to cover its own missed payments. the company, while insisting that debt repayments be brought forward from 2023 to 2021.
Creditors of Greensill Capital’s U.S. operations, which are currently the subject of separate Chapter 11 bankruptcy proceedings, have until October 8 to accept or reject a liquidation plan. The company’s unsecured creditors committee recommended the plan.
Mr Greensill is due to answer questions from Australian policymakers about his business model by Friday after receiving questions from the Companies and Financial Services Committee.
The committee is awaiting Mr Greensill’s response before deciding whether to hold further hearings on supply chain finance programs after a first hearing in July.