The metals tycoon Sanjeev Gupta has initiated legal proceedings to assert his ownership of a $3bn Australian steel producer. Sky News has learned that Mr. Gupta’s GFG Alliance holding company has filed a claim in the High Court challenging the administrators to Greensill’s claim over its shares in InfraBuild.
This legal claim, filed in the second half of September, marks an escalation in Mr. Gupta’s efforts to maintain ownership of his equity in InfraBuild, valued at billions of pounds. This development comes on the heels of Mr. Gupta losing control of Speciality Steels UK, a part of his Liberty Steel subsidiary. Speciality Steels UK, the third-largest steel producer in Britain, has collapsed into compulsory liquidation, with the government overseeing a sale process.
In addition to these challenges, Mr. Gupta’s assets in Europe are also embroiled in legal disputes. A spokesperson for GFG Alliance stated that the company has commenced legal proceedings regarding Greensill’s disputed security claim on InfraBuild shares. The spokesperson emphasized that the disputed security, dating back to 2021, lacks a legal basis as it was contingent on Greensill securing insurance and providing substantial new funding, which never materialized. As a result, the security remains unperfected and without consideration. GFG is seeking a declaration from the UK court to invalidate this security and is open to negotiating a settlement for all stakeholders.
UBS Asset Management, one of Greensill’s significant creditors, is listed as a defendant on the claim form. Grant Thornton, the accountancy firm handling Greensill’s insolvency process, has reportedly taken separate action in Australia to assert its security over the InfraBuild stake. The joint administrators of Greensill Capital UK Ltd have expressed their belief that this action lacks merit and have vowed to respond appropriately.
In August, it was revealed that the Australian Securities & Investment Commission (ASIC) had issued a new demand for information about Mr. Gupta’s activities to his Liberty Steel group. Sources indicated that ASIC had seized a mobile phone belonging to Mr. Gupta as part of their investigation.
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