The Scottish government is considering seizing assets belonging to GFG Alliance, owned by metals magnate Sanjeev Gupta, as creditors take enforcement action over unpaid debts. The government aims to prioritize its claims over other creditors and has hired legal advisers. Assets under consideration include a Highland aluminium smelter at Lochaber and surrounding estates.
This follows Gupta's loss of control of businesses after insolvency proceedings in Australia and the UK. In December 2016, the government provided a £586 million guarantee to help Gupta's business acquire the Lochaber smelter and hydropower plants from Rio Tinto. The government receives an annual fee and has security over the smelter, one plant, and land.
The planning follows the liquidation of GFG's Liberty Steel Newport, the latest insolvency across Gupta's steel group. The government has a £130 million provision against the guarantee. A government spokesperson stated they have security over several GFG Alliance assets at Lochaber protecting their position.
GFG says it is in regular dialogue with ministers and is unaware of such intentions. The crisis was triggered by the 2021 collapse of main funder Greensill Capital, involving former UK prime minister David Cameron. GFG's Scottish assets also include 114,000-acre Jahama Highland Estates offering deer stalking experiences.
In August, the government said it would take legal action after uncovering allegedly unauthorized transactions at the smelter. GFG Alliance said it fulfilled information requests and that matters do not impact smelter operations or employment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing