Sanjiv Gupta’s GFG Alliance says Liberty Primary Metals Australia has agreed refinancing terms which would cover its exposure to the collapse of Greensill Capital. The announcement comes just one day before a hearing in an Australian court on winding up the operation, Kallanish notes.

The deal brings as much as AUD 500 million ($386m) in financing to the company, supplied by White Oak Global Advisors, according to the Australian Financial Review. GFG Alliance says the deal is enough to repay the division’s debt to Greensill “in full”. The facility with Greensill totalled AUD 430m. The deal still has to go through around four weeks of documentation and confirmation.

Liberty Primary Metals Australia includes the steelworks at Whyalla and the Tahmoor Coal mining operation. Citibank, acting on behalf of Greensill creditor Credit Suisse, previously applied for the operations to be wound up. The first hearing in court is scheduled for Thursday, but the availability of financing may make the hearing redundant.

GFG said only on Tuesday that it was taking steps to secure financing and that its steel and mining operations, both in Australia and Europe, were earning record profits. Globally, GFG Alliance is believed to have raised around $5 billion from Greensill Capital.

White Oak supplied British Steel with GBP 90m ($125m) in financing in 2018, just a year before the venture capital-owned firm collapsed and was picked up by China's Jingye Group.