Credit Suisse has begun court action to push a $4bn trading business belonging to the metals magnate Sanjeev Gupta into insolvency, as it tries to recoup losses.
Gupta is the founder of Liberty Steel and its holding company, GFG Alliance. The latter has vowed to fight the legal petition, which presents a fresh threat to Guptas metals empire and the 5,000 people it employs across the UK.
The bank Credit Suisse is understood to have instructed administrators to file wind-up orders against Liberty Commodities Limited at a London insolvency court. The action was brought by a unit of another bank, Citigroup, which was acting under instruction from Credit Suisse.
Liberty Commodities is one of the main units of Guptas metals trading arm and specia…