The GFG Alliance’s steel business is facing restructuring as the UK group is still reeling from the collapse of its main financial backer, Greensill Capital. Investigations into the lender’s demise are ongoing, and the UK’s accountancy watchdog on Monday announced a probe into Greensill’s auditor.

“We are aware of the significant challenges facing the group but are pleased that we are making good progress to refinance, repay creditors and refocus the group on our core assets,” said chief restructuring officer Jeffrey S. Stein in a statement. “Much remains to be done but we are optimistic that a vibrant, well-funded, profitable and sustainable business will emerge as we systematically restructure and transform the group.”

As part of the restructuring, GFG is merging its downstream businesses Liberty Liège-Dudelange and Italy-based Liberty Magona into Liberty Galati, the largest steelworks in Romania.

Galati “will become the primary supplier of Hot Rolled Coil (HRC) to Liberty’s downstream businesses, ensuring a secure and sustainable supply of their raw material,” the company said. “The closer links to the downstream businesses will allow Liberty Galati to offer a significantly broader range of high quality products to its existing customer base across Central and South Eastern Europe.”

GFG said the initial stages of the restructuring have already begun and that first supplies from Galati will arrive at the Belgium-Luxembourg and Italian plants in the coming weeks.

Members of parliament discussed the latest developments on Tuesday afternoon with economy minister Franz Fayot (LSAP). “Trust in Sanjeev Gupta [GFG Alliance CEO, editor’s note] and his group is fading,” he said. “New promises are made and then not kept.”

National investment body SNCI is analysing possible rescue measures. “Discussions are underway with potential industrial partners of the SNCI, in order to prepare for any eventuality,” Fayot said. But these will depend on Liberty’s plans for the site.

Earlier on Tuesday, in answer to a parliamentary question, Fayot said the steelworks had benefited from two loans under a covid-19 support scheme without, however, indicating their amount.

An injection of funds under the “Neistart” programme--a package of measures to boost the economy post-pandemic--is still being examined, he said.

The equivalent of 85 full-time positions are currently working reduced hours, Fayot said, due to lack of funds to purchase raw materials. The site employs around 200 people. A spokesperson for the LCGB labour union, Robert Fornieri, said the restructuring would not help solve the steelworks’ financial difficulties.

Updated at 4.55pm to include remarks made by Franz Fayot in parliament. With additional reporting by Jérémy Zabatta.