Metals tycoon Sanjeev Gupta insists doubts over the authenticity of invoices issued by companies under his control can be explained by the future receivables financing provided to Gupta by collapsed lender Greensill. Accounting firm Grant Thornton – appointed to recover funds owed to Greensill after its collapse into insolvency last month – has reportedly been unable to verify invoices used by Gupta-owned companies to raise financing from the London-headquartered lender. According to the FT, citing correspondence and sources familiar with the matter, Grant Thornton has approached several companies with outstanding invoices from Gupta’s trading firm Liberty Commodities – only to be told by those companies that no trading relationship existed between those parties. In one example, German scrap metals trader RPS Siegen told reporters last week that “a trading relationship between us does not exist”, when presented with a Liberty Commodities invoice. However, Gupta has since told the newspaper that RPS Siegen was never accounted for as a current client, but as a “potential customer” at a later date. Anticipated future business between the two companies was used to underpin loans from Greensill, part of a controversial funding model whereby current and future receivables would be packaged up, insured and… continue reading
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Source: CTRM Center