The business empires of metal magnate Sanjeev Gupta and financier Lex Greensill leaned on each other to fuel their growth. But for years, executives and advisers close to both entrepreneurs have urged the two men to disconnect their businesses, according to people familiar with the case.
They have not. Now Mr. Greensill, Greensill Capital, insolvent and seeking Mr. Gupta, GFG Alliance, survive.
Greensill’s implosion has ensnared a range of financial companies, including Credit Suisse Group AG, which has frozen $ 10 billion in funds it manages with the company. Regulators have taken over control of Greensill’s German bank after saying that a special audit found suspicious accounts related to Mr. Gupta. The move came despite a last-ditch effort by SoftBank Group Corp., Greensill’s largest outside investor, to intervene directly with the regulator.
For GFG Alliance, which houses the steel, aluminum and energy businesses of the Gupta family and generates annual sales of $ 20 billion, the main source of funding has suddenly dried up.