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(Bloomberg) — Sanjeev Gupta’s GFG Alliance is close to an agreement to settle a dispute with a Hong Kong-based asset manager regarding unpaid debts, according to a person familiar with the matter.
GFG is close to a settlement with TransAsia Private Capital, which was pressing to take control of a block of shares in Simec Atlantis Energy Ltd., a tidal-power developer owned by GFG, the person said, asking not to be identified as the matter is confidential. A GFG unit owns 43% of U.K.-listed Simec.
The Financial Times, which reported the identity of the Hong Kong fund earlier, said TransAsia has more than $71 million in unpaid debts from Liberty Commodities, the trading arm of GFG. TransAsia had previously appointed receivers regarding the shareholding.
GFG, which had sought to challenge the appointment of receivers, declined to comment. Calls and messages to TransAsia and Simec Atlantis weren’t returned on Sunday. Simec Atlantis said previously that the move to appoint receivers only applied to GFG’s shareholding.
GFG, a loose collection of industrial companies, has been fighting to avoid collapse after the demise of Greensill Capital, its biggest lender in March. Owners Sanjeev Gupta and his father Parduman have been in talks with investors to refinance loans to U.K. and Australian units as Credit Suisse Group AG, the biggest buyer of loans to GFG through Greensill, sought to push them into insolvency.
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