Sanjeev Gupta Battles Administrators Over Three Billion Pound Steel Empire

Troubled British steel tycoon Sanjeev Gupta is at the centre of a legal dispute with administrators for control of InfraBuild, an Australian steel company valued at A$6 billion (£3 billion). InfraBuild, a linchpin of Gupta’s global metals empire, has come into focus following the collapse of UK-based Greensill Capital, which had heavily financed Gupta’s businesses.

The conflict centres on a mortgage held by Grant Thornton, administrators of Greensill, over GFG Alliance’s shareholding in InfraBuild. Gupta’s team claims the mortgage is invalid, arguing it was conditional on Greensill securing insurance and the provision of additional funding, neither of which materialised. Grant Thornton, however, insists on the validity of its legal position.

Grant Thornton is under pressure to use InfraBuild’s potential sale or financing opportunities to recoup outstanding debts for creditors. Greensill’s former clients, including Credit Suisse, lost vast sums when the controversial lender failed, having extended around $5 billion in loans to Gupta’s GFG Alliance. A report last October by Grant Thornton highlighted that GFG still owes Greensill approximately $600 million.

InfraBuild, a historic name in Australian industry dating back to its origins with BHP in 1915, has drawn interest from international bidders. Its value is tied to its extensive operations, which include employing 6,500 staff across Australia and running vital infrastructure in the steel supply chain.

Meanwhile, Gupta’s GFG Alliance continues efforts to restructure its global operations. The group, which spans enterprises across the UK, Europe, the United States, and Asia, counts Liberty Steel and Alvance Aluminium as part of its portfolio. GFG employs nearly 3,000 people across eleven sites in the UK alone. Liberty Steel is reportedly engaged in discussions with the UK government over further investments, including a potential second electric arc furnace in Rotherham.

This case adds to Gupta’s mounting legal and financial woes. The Serious Fraud Office is investigating GFG for allegations of fraudulent trading and money laundering linked to Greensill’s financing arrangements. Gupta was also prosecuted last year by Companies House for failing to file accounts for over seventy UK companies, further complicating his standing.

The resolution of the InfraBuild dispute could prove critical for the future of GFG Alliance and its restructuring efforts. For now, both sides anticipate a potentially lengthy and contentious legal battle over control of the Australian steel giant.