(Adds detail, background)
By Eric Onstad
LONDON, Aug 5 (Reuters) - The GFG Alliance owned by
commodities tycoon Sanjeev Gupta has settled disputes with Tata
Steel and Rio Tinto, it said on Thursday as it
makes progress in refinancing after its main lender collapsed.
Gupta Family Group (GFG) Alliance has been seeking fresh
funding to rescue its cash-starved web of businesses in steel,
aluminium and energy after supply chain finance company
Greensill filed for insolvency in March.
"It is encouraging that discussions with creditors continue
to progress well and our global restructuring plans continue to
develop," Jeffrey Stein, chief restructuring officer, said in a
statement.
The deal with Tata brought to an end proceedings launched
against several GFG units including Liberty Speciality Steels,
GFG said without providing further details.
In 2017 GFG bought Tata's UK speciality steel business for
100 million pounds ($139.21 million) and its pipe mills for an
undisclosed sum.
GFG said it had also settled a dispute with global mining
group Rio Tinto over the acquisition of the Dunkirk aluminium
smelter in 2018.
Gupta's family conglomerate GFG paid Rio Tinto $500 million
for Europe's largest aluminium smelter in France in a complex
deal that involved borrowing from a syndicate of banks and
commodity trader Trafigura, sources have told Reuters.
GFG also said that a previously announced deal with
commodities group Glencore to refinance the debt on its
aluminium unit would be finalised once it had resolved repayment
issues with an unnamed creditor.
GFG had previously said it was planning to use the Glencore
facilities to repay debt owed to buyout firm American Industrial
Partners.
The group, which has been under a cloud since the UK
launched an investigation into suspected fraud and money
laundering in mid-May, also said it plans to change its
governance structure and increase transparency, including the
addition of external independent directors.
($1 = 0.7183 pounds)
(Reporting by Eric Onstad
Editing by Jason Neely and David Goodman)