Liberty Steel Group’s Restructuring and Transformation Committee announced that it has signed a term sheet for a debt restructuring with parties responsible for the main creditors of Greensill Capital (UK), Greensill Bank AG and Credit Suisse Asset Management (Switzerland), subject to contract on an agreement in principle.

Liberty and Greensill Bank as main creditors are in the process of negotiating a similar term sheet for the debt restructuring of Liberty’s European steel businesses.

The agreement remains subject to documentation and the respective internal approvals. All parties will now work to prepare and execute the Agreement, providing Liberty with the platform to develop longer term sustainable financing.

Under the agreement, the parties have adjourned the winding up petitions against Liberty entities.

It will also allow Liberty to further advance its Greensteel strategy and industry leading ambition to become carbon neutral by 2030.

Jeffrey Kabel, Chief Transformation Officer, Liberty Steel Group said after several months of negotiations, we have now reached an agreement in principle that will provide recovery for the creditors and will significantly deleverage and derisk Liberty. This is a major step forward in restructuring and transformation.

“We will now work at pace with the creditors to prepare and execute the Agreement,” he said.

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