James Sanderson one day hopes to name a horse in the Kentucky Derby after British metals magnate Sanjeev Gupta, who he believes will save the steel industry in Georgetown, S.C.
For now, Mr. Gupta is fighting to save his empire. The entrepreneur’s GFG Alliance group of companies says it is seeking to refinance billions of dollars worth of debt after Greensill Capital, its main lender, filed for insolvency in March.
While the drama of Greensill’s collapse is unfolding in financial centers like London and Zurich, and has sparked a scandal at the top of British politics, blue-collar towns like Georgetown could face the worst consequences if GFG fails to refinance.
GFG employs about 35,000 people, mainly in economically deprived parts of Europe, Australia and the U.S., with some sites at risk of closure if Mr. Gupta doesn’t secure new finance and governments don’t step in.
Mr. Gupta was dubbed the savior of steel in Britain after buying up unloved metals businesses in run-down areas. He followed a similar playbook in the U.S., acquiring Georgetown steelworks in 2017 and six other assets for what he said would be a significant American steel business.
