Credit Suisse secures first tranche of GFG Alliance debt restructuring

ZURICH, Oct.21 (Reuters) – Credit Suisse (CSGN.S) has received an upfront payment under GFG Alliance’s debt restructuring deal for its Australian steel and coal assets, announced Swiss bank Thursday.

“We can confirm that we are now receiving the agreed upfront payment of A $ 129 million,” the Swiss bank’s asset management arm said on its website, referring to a figure equivalent to nearly A $ 97 million. dollars.

He expects to receive further payments on a monthly basis until the remaining A $ 240 million principal, including interest, is recovered by mid-2023 at the latest, he added.

GFG, owned by commodities tycoon Sanjeev Gupta, is working to refinance its network of cash-strapped companies in steel, aluminum and energy after the supply chain finance company Greensill Capital filed for bankruptcy in March.

The debt restructuring of its Australian assets will allow GFG to make a “substantial upfront payment” to Greensill Bank and Credit Suisse, with payments of the balance until the new due date of June 2023, announced on Sunday. GFG. Read more

In March, Credit Suisse had to suspend $ 10 billion in supply chain finance funds linked to Greensill and repaid the money it recovers in stages. It had recouped about $ 7.0 billion by the end of September. Read more

“We continue to work hard on the recovery and will look to make a sixth cash distribution in due course,” he said.

($ 1 = AU $ 1.3355)

Reporting by Oliver Hirt and Michael Shields; Editing by Clarence Fernandez

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