- Tata Steel sued 3 of Sanjeev Gupta’s metal units over missing and late payments for the deal made in 2017
- The Sue is based on a deal made on 2017
- The deal is based on the sale of TATA’s Speciality Metal Organization to Liberty Household Group for 100 Million Pounds($139Million)
- In 2017 Tata Steel agreed to sell its U.K. Speciality steel business to Sanjeev Gupta’s Liberty House Group for 100 million Pounds
- The specialty division includes assets in Yorkshire and services center in UK and China and focus on steel for the aerospace, automotive, and oil and gas industries.
- The Sales include assets which are based in South Yorkshire which includes electric arc steelworks and bar mill too at Rotherham, then at Stocksbridge the steel purifying plant, and in Brinsworth a mill and service centers at Bolton and Wednesbury, UK, and in Suzhou and Xi’an, China. About 1700 People are employed in Speciality Steels to produce steels for aerospace, automotive, and oil and gas industries
- Why Tata Sued? Tata Steel has sued three of Sanjeev Gupta’s metal units for 7.9 million pounds ($11 million) over missed payments, piling more woes onto the embattled tycoon’s corporate empire
- Why there was a late payment? Because Liberty told the Indian firm’s UK arm that it had run into difficulties as early as May 2020 when demand for steel was hit thanks to the pandemic And Gupta’s business has been searching for funding after the collapse of Greensill Capital, its biggest lender.
- As of March 2021, Liberty was still battling with late payments and wrote that it had been “going through a crisis arising out of the insolvency of its principal lender, Greensill Capital,” Tata’s lawyers said in the filings.
- Tata Group Demands an additional £ 10 million if Liberty House Group is not paid by May 1. However, it’s not yet clear whether the money has been repaid by Liberty House Group.
- This is the 2nd lawsuit on the Liberty House Group business within a month.
– Gupta’s largest lender Greensill Capital has collapsed so that’s why he’s finding funding for the Liberty Group
- It looked to possess secured a lifeline for his ailing steel business when terms were agreed on a 200 million-pound loan from White Oak Global Advisors LLC
- Many will avoid dealing with Gupta due to this Sue made by TATAs
- If Liberty Household Group survived then they may take a pandemic into their consideration before finalizing a payment contract
- They may never do business with TATA again as they couldn’t understand their problem even though TATA is in profit
- Even TATA won’t do any business again with this group as they couldn’t Pay on Time
- Sue will make Liberty Household Group to Pay TATAs first when they get their loan
- This Sue by TATAs is damaging the image of Liberty Household Group
Content Contributed by Abhijeet Dhakane
4,245 total views