The Scottish government had supposedly approved a guarantee related to a hydropower plant. Gupta’s GFG Alliance owns the Kinlochleven plant and the bonds were secured against this plant.
- Australian Lex Greensill, a former banking executive, founded his financing firm in 2011. Greensill provides supply chain finance.
- Sanjeev Gupta leads the GFG group. Greensill helped GFG raise billions of dollars via bond sales to help fund acquisitions and this includes the Kinlochleven bonds.
- Swiss asset manager Gam Holding purchased the £220m of bonds a year earlier because it potentially allowed higher repurchase at the prospect of government support.
- Scottish government denies having given any approval after the one given in 2016, for the aluminum plant.
- Greensill has hit back at the report, which it described as “false and defamatory”. It calls the report as a misrepresentation of facts.
“GFG has never informed any party that any such guarantees had been put in place, and we are clear that the Scottish government made no such guarantees,” GFG said. GAM, Haywood, and GFG issued statements and denied the allegations.
The alleged false statement comes under one of the series of bonds purchased by Gam fund manager Tim Haywood. A whistleblower complained about alleged misconduct. Haywood saw himself out soon after.
Japan’s SoftBank invested in Greensill and General Atlantic also invested $200 million. These investments value Greensill at $3.5 billion.