Liberty Steel USA refinances $125M loan as part of GFG Alliance restructure

Liberty Steel USA refinanced a $125 million loan with U.S. lender Eclipse Business Capital LLC to strengthen its operations, as part of parent company GFG Alliance Ltd.'s program to refinance its global operations.

The Liberty Steel Group implemented a new organizational model aimed at improving governance, accountability and decision making. GFG Alliance said April 19 that it expects the new model to help it "move forward and mature as an organization."

"The refinancing of our Liberty Steel USA business is further confirmation of rising confidence in our restructuring plan, our GREENSTEEL transformation strategy and the quality of our U.S. operations," Liberty Steel Group's Chief Restructuring Officer Jeffrey Stein said in the news release. "The strength of our international asset base is supporting our efforts to stabilize, refocus and refinance our operations, which are gaining momentum."

Liberty Steel Group is also taking steps to close or divest its noncore businesses, Stein said.

In March, the U.K. tax authority HM Revenue & Customs had reportedly withdrawn court cases that aimed to shut down four of GFG Alliance's British-based steel businesses for unpaid taxes exceeding £26 million.

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