Following on from the news that Greensill Capital had gone into administration, another statement has been issued by GFG Alliance. We now print that statement, in full, unedited.
A GFG Alliance spokesperson said: “GFG Alliance as a whole is operationally strong and we are benefiting from strong markets in steel, aluminium and iron ore. While Greensill’s difficulties have created a challenging situation, we have adequate funding for our current needs. Discussions to secure alternative long-term funding continue to make good progress and while this takes place we have asked all of our businesses to manage cash carefully. Combined with the efficiency drive we’ve implemented over the past year this has ensured that most of our major businesses generating positive cashflows.
In the UK speciality steel business, where weakness in the aerospace market has cut demand for some products by 60%, we have been taking specific actions to stabilise the business and improve cash flow. Self-help activities on the sites include reducing steel stocks, matching stock to customer orders, and working with customers to achieve terms that will bring in cash as early as possible. We are grateful for customers' and suppliers' support in this work which comes alongside our aim to secure additional working capital facilities to support the business and our use of the furlough scheme to support employees. We will continue to work closely with the unions and our employees to identify the most effective ways of supporting the business and preserving jobs.”