Britain's Serious Fraud Office said that it is investigating suspected fraud, fraudulent trading and money laundering within Gupta Family Group Alliance, including links to Greensill, the supply chain finance firm that went bankrupt earlier this year.
The factories will be the first in the steel magnate's empire to seek bankruptcy protection since the collapse last month of Greensill, a British firm which was a major provider of trade finance for GFG Alliance.
A debt standstill agreement with Greensill, which filed for administration on Monday, would help GFG stave off insolvency and avoid an asset fire sale, according to people familiar with the matter, who asked not to be named because the talks are private.
Sanjeev Gupta’s GFG Alliance is battling to negotiate a reprieve on its debt obligations to Greensill Capital as the unraveling of its biggest lender threatens to take down the metals group.