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GFG Alliance Says Government Covid Loan Application Was Legal | Steel Industry

The metal empire, owned by Sanjeev Gupta, said it obeyed the law when it filed a series of government-sponsored emergency coronavirus loans.

Various GFG alliance companies Coronavirus Large Enterprise Suspension Loan Scheme (CLBILS), a government program that guarantees loans to companies struggling due to a pandemic.

According to GFG, only one company was provided with £ 45.6m worth of funding under the scheme.

It was Gupta responding to the Financial Times report Rebuilt his business To be eligible for more loans. GFG lenders could only donate £ 50m to a single company, according to one source, but Gupta’s empire extends to 200 companies in other countries, including the United Kingdom and Singapore.He is a board member of 79 British companies, many of them Not submitted annual report for 2 years that’s all.

Gupta’s financing of the company was expanded by Greensill Capital. The collapse prompted Greensill Capital to scrutinize lobbying in Westminster. Former Prime Minister David Cameron was a paid adviser To the company.

A GFG Alliance spokesperson said the loan application was aimed at “supporting business activities and helping maintain employment in the industrial community after Covid-19 had a significant impact on some businesses and markets.” I said that.

The company sought approval from the authorities, applied in collaboration with an unnamed lawyer, and was also checked by a Greensill lawyer, a spokesman said. “We are confident that the GFG Alliance complies with all the rules that apply to GFG Alliance entities regarding these loan applications, including those related to the business structure.”

CLBILS was run by the British Business Bank (BBB), which certifies private lenders, including the UK’s largest bank and Greensill.The· But BBB has begun investigating Green Sill And a loan to Gupta before the collapse.

It was up to the bank to decide whether to lend to an individual company. The BBB has the authority to audit loans made by lenders to ensure they comply with the rules. You can also revoke the warranty “if a serious breach is identified”.

A BBB spokesman said he could not comment on Greensill due to an ongoing investigation.

GFG Alliance Says Government Covid Loan Application Was Legal | Steel Industry

Source link GFG Alliance Says Government Covid Loan Application Was Legal | Steel Industry

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