Greensill administrator unable to verify invoices underlying loans to Gupta: FT


(Reuters) – The administrator of Greensill Capital was unable to verify the invoices underlying the loans to Liberty Steel owner Sanjeev Gupta, the Financial Times reported Thursday.

Greensill administrator Grant Thornton has received denials from companies listed as debtors to the steel group saying they had never done business with Gupta, the FT report added.

Insolvent financial firm Greensill collapsed last month, days after losing investor funding and insurance coverage for its supply chain finance business.

Liberty is part of GFG Alliance, a conglomerate owned by the Gupta family and one of Greensill Capital’s largest clients.

Grant Thornton and GFG Alliance declined to comment on the report. Reuters was unable to immediately reach Greensill Capital.

Grant Thornton, who seeks to recover money owed to Greensill in his role as a director of the collapsed company, approached companies listed as debtors to Gupta’s Liberty Commodities trading firm last month, the FT report added. .

Earlier Thursday, Gupta warned creditors against the Liberty Steel disconnection, saying it had generated huge interest from financiers willing to refinance billions of dollars in debt owed to defaulting lender Greensill Capital. He did not give details of any specific offer.

(Reporting by Aakriti Bhalla in Bengaluru and additional reporting by Sarah Morland in Gdansk; Editing by Daniel Wallis)

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