Cash on the table for GFG

Cash on the table for GFG

GFG Alliance has received multiple offers from large investment funds to support their refinancing, with the proposals currently on the table providing enough cash to repay creditors of the Whyalla Steelworks.

In a statement, a GFG Alliance spokesperson said the company was in advanced due diligence regarding refinancing offers for its Mining and Primary Steel business which includes OneSteel Manufacturing and Tahmoor Coal.

"GFG Alliance expects the confirmatory due diligence to be complete within weeks before a final offer is accepted," they said.

It comes following a legal challenge launched by Credit Suisse to wind up the operations of OneSteel, currently trading as Liberty Primary Steel, and Tahmoor Coal.

In a further statement, GFG confirmed they do not conduct any financing with Credit Suisse nor has it sold any receivables to the company.

"Any proceedings instituted by Credit Suisse will be vigorously defended," A spokesperson said.

"We do not propose to comment on legal proceedings further."

Credit Suisse's application was made to the Supreme Court of New South Wales after the collapse of Greensill Capital, a key financial backer of GFG, into administration.

The GFG spokesperson said the company was in constructive discussions with Greensil's administrators, Grant Thornton, to negotiate a "consensual and amicable solution on the way forward".

"The Australian businesses are performing well and generating positive cash flow, supported by the operational improvements we've made and strong steel and iron ore markets," they said.