GFG Alliance launches high court action to reclaim aluminium smelter
Sanjeev Gupta’s GFG Alliance metals empire has launched an action in London’s high court in a last-ditch attempt to reclaim a prized aluminium smelter in northern France from a US private equity fund.
Two GFG Alliance companies have filed a legal claim against a fund controlled by American Industrial Partners (AIP), which has run the smelter in Dunkerque since October after gaining approval from the French government.
The claim is centred on a complex series of loan agreements, but GFG’s court filings suggest the case may prompt further scrutiny on operations controlled by Gupta. AIP alleged in September that it was unable to accept payments from GFG related to the loans because of an allegation that GFG companies may have broken Romanian law, the court filings suggest.
The complex battle over ownership of the smelter has added to the pressure on Gupta amid protracted financial problems that were triggered by the collapse of its main lender, Greensill Capital, in March last year. Before its collapse, Greensill had employed former prime minister David Cameron, who repeatedly lobbied government ministers on its behalf.
Gupta’s companies are also facing criminal investigations in several countries. The UK’s Serious Fraud Office (SFO) is investigating “suspected fraud, fraudulent trading and money laundering” in relation to GFG and Greensill, while Paris prosecutors have said they are looking into several allegations of misuse of corporate assets and money laundering. German authorities are also investigating.
The Dunkerque smelter, thought to be the largest in Europe, was an important asset for Gupta because it was still profitable, and high aluminium prices in recent months have made it even more attractive. However, days after
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