By Eric Onstad
LONDON, Oct 1 (Reuters) – Buyout firm American Industrial Partners said on Friday it acquired ownership of an aluminium smelter in France after a default on debt by a unit of the GFG Alliance owned by commodities tycoon Sanjeev Gupta.
GFG has been under pressure to find refinancing for its cash-starved web of businesses in steel, aluminium and energy after supply chain finance firm Greensill filed for insolvency in March.
AIP said in a statement the acquisition took place after a foreclosure on shares which were pledged to AIP under mezzanine financing arrangements.
In July, GFG said it had agreed a deal with commodities group Glencore GLEN.L to refinance the debt on its aluminium unit after GFG’s main lender collapsed.
Glencore declined to comment, while GFG were not immediately available to comment.
The transfer of ownership has been approved by French authorities and were in compliance with European Union merger regulations, AIP added.
“The purchase consideration … will be determined in due course by an independent valuation,” the statement said.
AIP said it would continue to keep the current leadership at the smelter and no disruptions were expected.
“AIP expects to provide additional capital to support the business going forward,” it added.
(Reporting by Eric Onstad, Editing by Louise Heavens)
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