Citibank Files Wind Up Applications for GFG Australian Assets

Citibank N.A. has lodged an application with Australia’s Supreme Court of New South Wales to wind up two businesses run by Indian-British steel magnate Sanjeev Gupta as part of insolvency measures, Reuters reported. The London branch of Citibank lodged an application on Tuesday to wind up OneSteel Manufacturing, which includes the Whyalla steel plant in South Australia, and Tahmoor Coal, which includes a coal mine in New South Wales, according to the court. A directions hearing is listed for May 6. The application comes as Credit Suisse takes steps in London and Australia to recoup losses from supply chain provider Greensill Capital, which has applied for insolvency, after providing funding to Gupta’s privately held conglomerate GFG Alliance among others. Greensill began to unravel last month when its main insurer stopped providing credit insurance on $4.1 billion of debt in portfolios it had created for clients including Credit Suisse. Read more.
Location