The fall-out from a multi-billion dollar fintech insolvency is being felt in the steel industry which has thousands of workers across Australia, including in Ballarat.
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Greensill Capital, a UK-based financial services company set up by former Queensland entrepreneur Lex Greensill to offer supply chain financing, entered into administration on March 8.
The former foreign minister Julie Bishop was a high-profile adviser who cut ties with the company earlier this month.
One of the companies that has been heavily reliant on its complex system of providing finance is GFG Alliance, a company run by billionaire Sanjeev Gupta. Subsidiaries of the company provide employment in the steel industry in Australia for around 4500 workers.
The steelworks in Whyalla in South Australia are perhaps among the most high-profile of the GFG Alliance sites.
However, many other workers are involved in a separate business called InfraBuild - formerly branded as Liberty Steel - which has steel recycling and distribution sites in hundreds of locations across the country, including a recycling site in Coronet Street in Wendouree.
The exposure of the workforce in Ballarat is small - there are fewer than 10 workers at the recycling site, a manager told The Courier on Friday.
While the workforce is aware of the financial situation affecting the company, the official line is the financing will be resolved.
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However, the ratings agency Moody's has now downgraded the company's credit rating to junk bond status, and has flagged there may be a change in the company's control if the situation deteriorates.
There may be some reassurance for workers with InfraBuild reportedly one of the most financially robust parts of the business.
"GFG Alliance as a whole is operationally strong and we are benefiting from a thirteen-year high in steel prices as well as strong markets in aluminium and iron ore," a spokesperson said in a statement issued to The Courier this week.
They acknowledged Greensill's difficulties had created "a challenging situation", but said there was "adequate funding" for the company's current needs.
"Through our global efficiency drive we've improved our operations' margins with most of our major businesses generating positive cashflows.
"Discussions to secure alternative long-term funding are progressing well but will take some time to organise.
"While this takes place we have asked all of our businesses to manage cash carefully.
"We thank our employees, customers and suppliers for their continued support."
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