Brookfield has ended talks with Sanjeev Gupta over a proposed loan worth hundreds of millions of dollars, dealing a blow to the British industrialist’s efforts to secure financing beyond its main lender Greensill Capital.
The Financial Times revealed last week that Gupta, dubbed the UK’s ‘savior of steel’ for its unloved metal plant acquisitions, had been in talks with the Canadian asset manager over a loan secured on a stake in one of its most valuable assets. .
People familiar with the matter, however, said those talks had now ended in failure. The proposed loan would have sat in a holding company above Gupta’s InfraBuild, an Australian steel and recycling company that is considered one of the most stable assets in the industrial GFG Alliance’s empire. .
Brookfield, an investment powerhouse with more over $ 500 billion in assets, was the only potential lender Gupta had had discussions with, people familiar with the matter said last week when the talks were first reported.
Talks break off as Credit Suisse on Monday froze withdrawals of $ 10 billion from Greensill-linked investment funds, with Swiss bank executives particularly concerned about their exposure to Gupta’s business, people close to them say folder.
Greensill, which is backed by SoftBank and advised by former UK Prime Minister David Cameron, has provided billions of pounds in funding to the GFG Alliance in recent years – a coward…
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