Spanish authorities have insisted on proof of solvency from the Sanjeev Gupta-led GFG Alliance’s subsidiary interested in acquiring Alcoa’s San Ciprian aluminium smelter located in the northwest Spain.
GFG Alliance’s biggest lender, Greensill Capital filed for bankruptcy last week. Post the collapse of Greensill Capital, GFG group is under immense pressure to find a financier to funding its expansion plans. Most of GFG group’s acquisitions are funded by Greensill.
Although, GFG Alliance spokesperson reassured the group’s operations are core businesses are running normal and the company is in discussions with various financial institutions to diversify its funding, court documents reveal that the collapse of Greensill will bring down GFG, reported local media. Vendors, including scrap suppliers are reducing their credit exposure to Liberty steel in UK.
Alcoa’s aluminum smelter at San Ciprian site has an annual capacity to produce 228,000mt aluminium. GFG Alliance aims to increase its annual aluminium capacity to 1mn mt by 2023, predominately through acquisitions, said Gupta in October. GFG Alliance’s current aluminum capacity is at 600,000mt.