Gupta’s GFG Owes $9.8 Million to Scottish Government: Times

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Embattled tycoon Sanjeev Gupta’s GFG Alliance owes 7 million pounds ($9.8 million) to an arm of the Scottish government, The Times of London reported.

The debt is owed by Liberty Steel Dalzell to Scottish Enterprise, and was first reported in the agency’s accounts for 2016-17. The same loan also appeared in the Scottish body’s most recent accounts and has yet to be repaid, the newspaper said.

GFG-owned Liberty Steel bought the Dalzell steel works and the Clydebridge facility in 2016 in a deal that involved the Scottish government first buying the sites from Tata Steel Ltd., which had mothballed them. The government then gave a three-year loan to cover the cost of restarting the Dalzell mill, The Times reported.

A spokesman for Scottish Enterprise told The Times it was in talks for the loan repayment. A GFG spokesperson declined to comment.

GFG’s financial health has come under question following the collapse of its biggest lender, Greensill Capital. The financing firm entered administration this week, and said it had a $5 billion exposure to GFG, which owns steel assets across the world, including in the U.K.

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