Commodity Trader GP Global Seeking to Sell Assets to Repay Banks - Bloomberg:
GP Global Group, a United Arab Emirates-based commodities firm, is seeking to sell oil-storage terminals, fuel barges and other assets to repay creditors after trying unsuccessfully to find a buyer for its trading units, according to people involved.
A restructuring adviser is reviewing offers for parts or all of the business and may recommend a deal this month, the people said, asking not to be identified because the information is confidential. Geneva-based Mercuria Energy Trading SA is among firms that have expressed interest, according to people familiar with the situation, one of whom said the two sides were far apart on a potential valuation.
Mercuria declined to comment. A spokesperson for GP Global said all options are on the table and that the company is looking for the one that will yield the best result for its creditors.
Commodity trading companies worldwide are struggling as the coronavirus saps economies and depresses demand for fuel and other primary products. Adding to their pain is a shortage of credit since several specialized lenders, including ABN Amro Bank NV, BNP Paribas SA and Societe Generale SA, began reducing their exposure to the industry.
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