September 17, 2021

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The father of tycoon Sanjeev Gupta leaves the UK as a group of battles for survival

NDTV News


Parduman Gupta, father of the embattled metal magnate Sanjeev Gupta, has moved from the UK.

Parduman Gupta, father of troubled metal tycoon Sanjeev Gupta, has moved from the UK, just as the couple’s GFG Alliance teeters on the brink of collapse of its largest lender Greensill Capital.

The senior Gupta has changed his country of habitual residence from Great Britain to India, according to several documents filed in recent weeks with the Companies House, the register of companies. He owns the Simec Group, the branch of the entrepreneurial empire that deals with renewable energy, shipping and mining, and was founded by the tycoon as an export and import company in India.

It is unclear where Parduman Gupta is currently located, but a Companies House spokesperson said a company director must list his country of residence and that this “should match his usual residential address”. A spokesperson for the GFG Alliance, a loose grouping of companies owned by the father and son, declined to comment.

Sanjeev Gupta has also been absent from the UK for several months, where GFG owns several steel and aluminum factories and employs around 5,000 people. In a recent podcast for GFG employees, he claimed he left the UK for Dubai before Christmas and hasn’t returned since.

“Dubai is the perfect place for me and my family to operate from for now,” Gupta said in a podcast on April 16, citing the city’s time zone.

But he said he was eager to be on the move again. “As soon as Covid’s travel restrictions in the UK, Australia and Europe are lifted, I will definitely try to confront customers and employees around the world.”

“Very opaque”

Last month GFG asked the British government for a £ 170 million ($ 235 million) bailout, but the request was denied. Last week, Secretary of Affairs Kwasi Kwarteng told a parliamentary committee that it would be “very irresponsible” to give taxpayers’ money to the group, describing it as “very, very opaque” and with “passivity that no one seems to have gotten to the bottom of. . “

GFG has borrowed around $ 5 billion from Greensill and is desperately seeking new funding, which Sanjeev Gupta is coordinating from Dubai.

Some progress has been made. Three lenders are in talks to refinance one of its Australian steel mills, while a private equity firm has positioned itself to buy two of the group’s aluminum plants.

However, other parts of the business are facing difficulties. Three French units were put into voluntary administration last week, while other parts of the GFG in France and Belgium sought protection from their creditors.

Gupta said on the April 16 podcast that some of his UK resources “were struggling with a lack of funding at the moment.” He called on GFG employees to be “brave” but warned that “some tough decisions” would come.

(Except for the title, this story was not edited by the NDTV staff and is posted by a syndicated feed.)