United Kingdom

British ministers reject Sanjeev Gupta's bailout plea - FT

2 minute read
1/2

Liberty Steel's Sanjeev Gupta smiles outside the company's Liberty Steel processing mill in Dalzell, Scotland, Britain April 8, 2016. REUTERS/Russell Cheyne

Register now for FREE unlimited access to Reuters.com

March 28 (Reuters) - British ministers have rejected a request from mining magnate Sanjeev Gupta for a 170 million pound ($234.36 million) emergency loan to prevent his group, GFG Alliance, from collapsing, the Financial Times reported on Sunday.

GFG, a holding company for Gupta's assets, was the biggest recipient of financing from Greensill, a British financing company, which filed for insolvency earlier in March. read more

The British government wrote back to Gupta formally rejecting the request last week due to multiple concerns, the FT reported, citing people familiar with the situation.

Register now for FREE unlimited access to Reuters.com

A GFG spokesman declined to comment.

A government spokesman did not comment specifically on the rejection of GFG's loan request mentioned in the FT report, but said the government was "closely monitoring" developments related to Gupta's Liberty Steel.

Gupta said earlier this month that the conglomerate had been in talks with administrators of its former financial backer Greensill on a so-called standstill agreement.

($1 = 0.7254 pounds)

Register now for FREE unlimited access to Reuters.com
Reporting by Derek Francis in Bengaluru; Editing by Alex Richardson and Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.

More from Reuters