The Whyalla steelworks looks cooked as debt mounts on top of debt for so-called ‘knight in shining armour’ and GFG owner Sanjeev Gupta.
About 3000 people work at the plant and there are another 1500 ancillary jobs, providing contractual and other services. It is the largest employer in Whyalla and one of the largest in South Australia.
The financial problems come after the steelworks, were plagued by problems through much of 2024, including two separate months-long blast furnace shutdowns, which halted steel production and cost GFG millions.
Gupta’s real problems have lain in unresolved as major court cases in the UK, Europe and America hobble his emprie.
Gupta has “reached the end of the road” in his three-year struggle with a group of creditors seeking almost $US200 million ($300 million), a UK court heard last year.
A judge in the English high court put a January 13 deadline on Liberty Commodities, one of Mr Gupta’s network of companies, to wrap up its drawn-out talks on a debt repayment deal with San Francisco-headquartered investment firm White Oak Global Advisors.
White Oak has been pursuing what it said is a debt close to $US200 million that Liberty was supposed to repay in 2021, under a financing deal.
Liberty Commodities is one of the many companies in Mr Gupta’s GFG Alliance group which has not filed accounts since the collapse of its under writer, Greensill Capital. He is still negotiating with Greensill Capital’s administratorsover a $US587 million debt.
Greensill companies have previously pointed to the GFG Alliance and its debts, which had “started to default”, for its failure.
Mr Gupta is also facing a fraud investigation, bankruptcy and liquidation proceedings at several European steel mills.
Mr Gupta bought the steelworks in 2017, along with other assets, for about $700 million after the collapse of Arrium, once part of BHP.