Whyalla steelworks safe as GFG Alliance secures new lenders

GFG Alliance’s Sanjeev Gupta has refinanced debt for the Whyalla steelworks ending speculation the collapse of a financier to the company threatened the closure of the works.

The company has secured a $430 million refinancing of the steelworks and his Tahmoor Coal operations to replace funds provided by the collapsed group Greensill Capital.

GFG Alliance said in a statement that the Greensill debt would now be repaid in full.

“GFG Alliance is pleased to announce that Liberty Primary Metals Australia has agreed terms to refinance its Greensill exposure.”

Premier of South Australia Steven Marshall said the much improved performance of the Whyalla Steelworks had contributed to the refinancing.

“Our Government remains a steadfast supporter of the people of Whyalla, the local Council and of course the steelworks and the Middleback Ranges mining operations.

“The South Australian and Federal governments have worked closely together to give potential financiers the confidence to back Whyalla.

“This is the outcome all South Australians were hoping for and I look forward to the Whyalla Steelworks continuing its transformation as a key employer in Whyalla and the Iron Triangle.”

Picture: Whyalla steelworks

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