Greensill Capital administrator unable to verify Gupta invoices

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The Greensill Capital administrator was unable to verify the invoices underlying the loans to Sanjeev Gupta, after the companies listed on the documents denied ever doing business with the metals mogul.

Greensill, whose collapse last month turned into a corporate and political scandal, has provided financing to Gupta’s businesses backed by payments to its suppliers and customers.

The disputed invoices raise questions about other transactions underpinning billions of pounds in loans from Greensill to Gupta.

It comes as the metal tycoon’s GFG Alliance, which has metal factories around the world and employs 35,000 people, is on the brink of collapse. The state of Gupta’s steel operations in the UK has been of particular concern, with unions warning up to 5,000 jobs are at risk across the country.

Grant Thornton, who seeks to recover money owed to Greensill in his role as a director of the collapsed company, contacted companies listed as debtors to Gupta’s Liberty Commodities trading firm last month, which has borrowed hundreds of dollars. million pounds backed by bills.

Greensill had provided a debt financing facility to Liberty Commodities, which allowed it to swap customer invoices for up-front cash. This process, also known as factoring, meant that Greensill would be refunded when the customer paid the invoice, paying for goods purchased from Liberty.

However, several of those companies have challenged the veracity of invoices from the metals tycoon’s commodities trading company, according to people familiar with the matter and with correspondence seen by the Financial Times.

RPS Siegen GmbH, a German scrap company, confirmed to FT that it had been approached about an unpaid invoice and said it had not negotiated with Liberty Commodities.

“We know them, but there is no business relationship between us,” said Winfried Winterhager, Director of RPS Siegen.

Grant Thornton and Greensill Capital declined to comment. Gupta’s GFG Alliance said it was unable to comment without seeing the relevant invoices.

Credit Suisse, which has invested its clients’ money in bond-type products designed by Greensill, this week pushed to file insolvency claims against several companies of the British businessman, including Liberty Commodities.

Gupta, once hailed as the ‘savior of steel’ for his rescue of metallurgical plants from Wales to Australia, disputed Thursday that these the debts were due for the refund.

The UK government last week rejected Gupta’s appeal for more than £ 170million to help bail out its UK operations.

The FT has Previously reported that Greensill provided funding to the Gupta business empire on the basis of invoices from companies apparently independent, but who in fact had close ties to the steel tycoon.

Letter in response to this article:

Focus on Greensill’s “ potential claims ” / De Sanjeev Gupta, Executive Chairman, GFG Alliance, London SW1, United Kingdom

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