Liberty Steel Group has entered into a standstill agreement with Greensill Bank, its largest creditor, on the debt facilities relating to its European steel businesses. Under the agreement, all enforcement actions are paused between the parties over the Greensill Bank debt facilities provided to Liberty in 2019.
According to Liberty, the agreement will enable it to develop a longer-term sustainable financing structure. The agreement is valid until 31st October 2022 and may be extended until the end of 2022.
Detailed due diligence and information exchange continues between the two parties.
“Today’s standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders.''Liberty Steel Group spokesperson
A Liberty Steel Group spokesperson said: “Today’s standstill agreement with Greensill Bank demonstrates we are getting close to a consensual debt restructuring that is in the best interests of all our stakeholders.
We are working intensively towards a settlement with our major creditors in a timeframe which would obviate the need for a legal battle. Our core businesses continue to perform well and are operationally strong despite some economic headwinds.”
This announcement of an agreement follows months of difficulty for the steel company, including a criminal investigation, and failure to have a legal attempt to wind up three of Liberty’s UK steel businesses thrown out on the grounds that their problems were caused by the coronavirus pandemic.