ZURICH: Credit Suisse has received an upfront payment as part of GFG Alliance's debt restructuring deal for its Australian steel and coal mining assets, the Swiss bank said on Thursday.
"We can confirm that we are now in receipt of the agreed upfront payment of A$129 million," the Swiss bank's asset management arm said on its website, referring to a figure equivalent to nearly $97 million.
It expects to receive further payments on a monthly basis until the remaining principal of A$240 million, including interest, has been recovered, by the middle of 2023, at the latest, it added.
GFG, owned by commodities tycoon Sanjeev Gupta, has been scrambling to refinance its cash-starved web of businesses in steel, aluminium and energy after supply chain finance firm Greensill Capital filed for insolvency in March.
The debt revamp for its Australia assets will allow GFG to make a "substantial upfront payment" to Greensill Bank and Credit Suisse, with instalments of the balance paid until the new maturity date of June 2023, GFG said on Sunday.
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In March, Credit Suisse had to suspend $10 billion in supply chain finance funds linked to Greensill and has been paying back the money it recoups in stages. It had recovered about $7.0 billion by the end of September.
"We continue to work hard on recovery, and will seek to make a sixth cash distribution in due course," it said.
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