You want to believe the best, that somehow Sanjeev Gupta’s GFG’s Liberty Primary Metals Australia (LPMA), will pull a rabbit out of a hat and refinance a new deal to cover its Greensill debt and save the Whyalla Steelworks.

So far, no rabbits and no hats. Only the falling price of iron ore.

As an employment specialist, this is a major issue for South Australia, as the steelworks props up Whyalla.

A six-week standstill agreement with Credit Suisse expired on 4 August without GFG Alliance refinancing any of its Australian operations.

GFG previously said it expected the full refinancing to be complete within six weeks.

A standstill agreement is a legal hold on court action – in this case probably selling the Whyalla Steelmill – because it had flagged a refinancing option.

The NSW Supreme court action aims to wind up the GFG’s LPMA operations, including the Whyalla Steelworks and a coking coal mine in NSW.

There’s no news of a speculative deal with US private equity firm White Oak Global Advisers to refinance LPMA – which includes the Whyalla Steelworks – which GFG said would be “sufficient to pay out LMPA’s Greensill debt in full”.

When GFG’s main financier Greensill was placed into administration in March, Credit Suisse Asset Management took legal action to hunt down billions of supply-chain finance funds it gave to Greensill, which in turn was given to GFG, through some highly unusual financing arrangements.

The Whyalla steelworks is the town’s biggest employer with around 1200 workers and a further 600 work in the associated Middleback Ranges mines nearby.

British billionaire industrialist Sanjeev Gupta was hailed a saviour of the Whyalla business and town after former steelworks owner Arrium went into administration. He took it over in 2017, vowing to improve and expand the operation.