A financing group, Greensill capital, based on London and backed by Japanese investment conglomerate Softbank group alongside General Atlantic of United States, had proffered a false statement last year linked to its bonds issued back in 2017 on behalf of commodities tycoon Sanjeev Gupta, 48, an Indian-borne billionaire British businessman, a spokesman with direct knowledge regarding the issue had unveiled on Sunday, the 7th of July 2019.
As a matter of fact, Greensill capital had issued a statement back in May, 2018, to the bond market saying to its investors and brokers that the Scottish government had permitted a guarantee linked to a hydro power plant based in Kinlochleven, a small mountain village in Scotland, owned by Gupta’s GFG Alliance, against which the bonds were secured.
Nonetheless, according to a government document seen by a press agency, Scotland said it did not provide any kind of guarantee and there had been no record of a meeting required to approve such guarantees. Besides, a spokesman for the Scottish government said that the government of Scotland did provide a guarantee linked to an aluminum plant owned by Gupta’s GFG in 2016, however, no other guarantees were offered.
In fact, backing of Scottish government had been one of the key reasons behind Swiss Asset manager, GAM Holding AG’s purchase of about 220-million-pound worth of bonds in 2018 alongside other investments on GFG’s bonds, while Greensill initially denying all of the allegations said, “Greensill never knowingly issues false statements and strongly refutes such assertions.
The contents of any statements made are believed to be accurate at the time made”. Aside from that, Gupta family’s metal, power and banking businesses, GFG Group had also declined any kind of government assurance regarding a guarantee, saying, “GFG did not mislead anyone as to the nature of its discussions about additional Scottish government guarantees.
GFG has never informed any party that any such guarantees had been put in place, and we are clear that the Scottish Government made no such guarantees,” however, the sensitive issue would likely to end up in a courtroom battle, as someone has been telling a lie, added an GFG spokesman.