Gupta’s InfraBuild seeks $544m in fresh debt to stave off lenders
InfraBuild, the steel distribution group that is one of British businessman Sanjeev Gupta’s key assets, has launched a last-ditch $US350 million ($544 million) bond in a bid to raise enough money to repay loans due next year, warning there were “material uncertainties” it could pay its debts.
In accounts filed with the corporate regulator, the business that was formerly OneSteel and Smorgon Steel said the company’s cash-flow forecasts included $US350 million in new bonds launched this month. That would allow it to repay $US325 million that would become due next October.
British billionaire Sanjeev Gupta reshuffled some steel assets earlier this year, and said Australian-based InfraBuild would buy three companies in the US from GFG Alliance. Ben Searcy
“There remains uncertainty around the consolidated group’s ability to complete the planned capital markets transaction given the current global macroeconomic environment and potential investor interest and participation, the positioning of the offer documents, pricing, terms, conditions of use and achieving acceptable terms,” the accounts warn.
Mr Gupta’s empire, which spans steel mills in Europe, North America and the Whyalla steelworks, has been under significant financial pressure ever since the collapse of his primary financier, Australian banker Lex Greensill’s Greensill Capital.
In May, Mr Gupta struck a deal with BlackRock and Connecticut’s Silver Point Credit, which specialises in distressed assets, for a $US350 million refinancing. While some of that money was to be used to buy three subsidiaries from Mr Gupta’s GFG Alliance – Keystone Consolidated Industries, Johnstown Wire Technologies and the Georgetown steelworks in South Carolina – that may now not occur due
Read more on afr.com
