Sanjeev Gupta does not believe in miracles. However, the founder and chairman of GFG (Gupta Family Group) which houses Liberty Steel, probably wishes he did. Many feel that only a miracle can save him. Gupta, on his part, exudes confidence. “I will manage to get funds,” he says in a matter-of-fact tone. Speaking to Busines India, Gupta did not seem unduly perturbed over the fact that his main financier, Greensill Capital Management Co (UK) Ltd, has collapsed. And the administrators are calling all its customers, including Liberty, to pay up their dues. Gupta simply says: “It is an unfortunate crisis but I will be able to come out.” Efforts are on to ensure that all the 11 sites of Liberty Steel in the UK remain operational. Recovering from Covid after battling the disease for weeks, Gupta has plans to pay up his dues. The votary of green steel confides that “I will get bridge finance. All plants which I bought were closed. I have worked hard and will not leave my workers in the lurch. They are my family”. At stake are around 3,000 jobs across the group’s steel plants in the UK. Besides steel, there are another 2,500 workers at his other businesses, including power and hydro. The genesis of the problem lay in the collapse of one of the group’s largest financiers, Greensill Capital Management Co (UK) Ltd. Greensill was incorporated in 2012, the same year in which Gupta embarked on his journey to become a steel magnate, by buying over Mir Steel, the mothballed unit in New South Wales (Australia). Lex Greensill, an Australian born billionaire, was the CEO and co-founder of the group. Armed with a degree in law, the farmer’s son soon made waves in Citibank and Morgan Stanley, where he was employed. The former banker, who had made it big in supply chain finance, set up the Greensill group, which later became one of the financiers to GFG, besides other large companies. The Greensill financial group had operations in the UK and Australia, besides having a bank – Greensill Bank DE. The group used to provide cash finance to units against receivables, later bundling the same by selling them to other financiers, who would recover the money once the bills were due. Known as factoring, this was a perfectly good business and worked quite well. Besides, Greensill also used to fund risky assets comprising future receivables, even before the sales were effected and bills raised. Greensill also used to provide finance on future cash receivable by even predicting potential clients. Supply chain financing (reverse financing) especially the kind dependent on taking bets based on future cash flows, was a risky business. And, similar to what happened in the US sub-prime crisis, debts were bundled into documents, which were later placed with leading banks. Greensill claims to have clients, including Coca-Cola and Vodafone, and has provided funds to the tune of $50 billion to several other entities, including GFG. The group had marquee investors, including SoftBank Vision Fund and General Atlantic, and was valued at about $3.5 billion. Lex Greensill also had friends in high places. David Cameron, former prime minister, was an advisor to Greensill.