British ministers reject Sanjeev Gupta’s bailout plea

UK billionaire Sanjeev Gupta’s (left) (Image courtesy of GFG Alliance)

British ministers have rejected a request from mining magnate Sanjeev Gupta for a 170 million pound ($234.36 million) emergency loan to prevent his group, GFG Alliance, from collapsing, the Financial Times reported on Sunday.

GFG, a holding company for Gupta’s assets, was the biggest recipient of financing from Greensill, a British financing company, which filed for insolvency earlier in March.

The British government wrote back to Gupta formally rejecting the request last week due to multiple concerns, the FT reported, citing people familiar with the situation.

A GFG spokesman declined to comment.

A government spokesman did not comment specifically on the rejection of GFG’s loan request mentioned in the FT report, but said the government was “closely monitoring” developments related to Gupta’s Liberty Steel.

Gupta said earlier this month that the conglomerate had been in talks with administrators of its former financial backer Greensill on a so-called standstill agreement.

($1 = 0.7254 pounds)

(By Derek Francis; Editing by Alex Richardson and Jane Merriman)

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