Manchester — Sanjeev Gupta’s plans to save his sprawling metals empire were mired in confusion on Saturday as a financial backer sent mixed messages about its support in the wake of a UK fraud probe.
Hours later a spokesperson for the San Francisco-based lender said it was continuing efforts to refinance Liberty Primary Metals of Australia, “subject to financial due diligence and acceptable governance”. Last week it had agreed terms with Gupta to refinance the unit. White Oak declined to comment on Saturday on the status of a reported £200m of lending to Gupta’s UK businesses. The company also wouldn’t comment on a report in the Financial Times saying White Oak may be reluctant to walk away because it has a financial exposure to Gupta’s businesses after buying up debt from the steel tycoon.
Gupta has been scrambling to find new financing after Greensill, his biggest lender, fell into insolvency. His group employs 35,000 people across 30 countries, all which may be in danger of losing their jobs if the tycoon can’t secure replacement loans. He faces an uphill battle, with the SFO probe likely to deter many potential financiers.
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