Friday 16 October 2020

Middle East News: Commodity Trader GP Global Sells Assets to Restructure - Bloomberg

Middle East News: Commodity Trader GP Global Sells Assets to Restructure - Bloomberg:

Troubled commodities trader GP Global Group has “accounting irregularities” in its books, according to the restructuring adviser hired to salvage the company’s assets.

In a presentation seen by Bloomberg News, FTI Consulting warned that unsecured lenders in the holding company for the group could expect to recover between 0% and 27.5% of their debts.

It marks an acknowledgment of the seriousness of the situation at the United Arab Emirates-based commodities firm, which trades oil products as well as operating storage facilities and a refinery in Hamriyah and Fujairah.

Lenders have more than $1 billion in exposure to the company, Bloomberg reported earlier this month, citing people with knowledge of the situation. Known as Gulf Petrochem Group until 2018, GP Global said in July it was restructuring its finances after lenders withdrew credit lines.

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