LONDON: Liberty Steel, a division of Indian-British steel giant GFG Alliance, announced Tuesday that it has reached a debt restructuring deal with creditors of its bankrupt main lender Greensill.

Liberty has reached an agreement in principle with Greensill’s biggest main creditors, comprising Credit Suisse Asset Management, Greensill Bank and Greensill Capital (UK) Limited, it said in a statement.

The troubled UK steelmaker gave no financial details but added that the move represented “a major step” in its refinancing.

“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,” said Chief Transformation Officer Jeffrey Kabel.

As part of the deal, creditors have halted efforts to call for the winding up of Liberty’s assets.

Indian-British billionaire Sanjeev Gupta, the head of GFG, was once seen as the saviour of British steelmaking.

However, since last year’s spectacular collapse of Greensill — which specialised in short-term corporate loans via a complex and opaque business model — GFG has scrambled to slash costs in order to survive.