(Bloomberg) -- Sanjeev’s Gupta’s settlement with creditors owed hundreds of millions of pounds hangs in the balance after the South Australian government placed one of his steelworks into administration last month.
Speciality Steel UK Ltd. successfully asked a London judge court to delay a hearing that would’ve approved restructuring of the company’s debts on Thursday. The bulk of the business’s creditors relate to funding provided to Gupta’s GFG Alliance by Greensill Capital before it collapsed in 2021.
Agreement on a deal between the Greensill creditors in GFG Alliance was reached last month, but has been scuppered by the decision of the South Australian government to appoint administrators to take over the running of the Whyalla steelworks.
“The position in Australia has led to the global settlement no longer being viable,” Marcus Haywood, a lawyer representing Speciality Steel said in court on Thursday.
The restructuring is just one of a number of legal actions Gupta is facing from creditors demanding repayment. Last week investment firm Fitzwalter Capital filed a suit in New York claiming Infrabuild, another Australian GFG entity, had defaulted on its debt.
Meanwhile, a winding-up petition against Speciality Steel by supplier Harsco Metals Group is set to be heard at the start of next month in London. Other GFG entities in the UK, Singapore and Czechia have already been placed into insolvency.
Without new funding or a comprehensive restructuring plan, the company will run out of money by May 24 likely result in a liquidation of the firm, lawyers said at Thursday’s hearing.
Judge Robert Hildyard granted the company’s request for an adjournment in order for GFG to reach a new agreement with the Greensill creditors, but warned that there would not be any further leeway for the company.
“You are not going to get another adjournment of this,” Hildyard said. ”I have been kept on an elastic band. We are here to serve but not to be available at the drop of a hat.”
©2025 Bloomberg L.P.