Sources close to Apollo said the buyout firm was still viewing a possible transaction “very positively”, but warned the process could again stall as there were still differences in opinions about the deal by various parties involved.
Union leaders have been in rolling discussions with representatives from Mr Gupta’s umbrella group GFG Alliance after it emerged some of Mr Gupta’s businesses had stopped payments to Greensill, sparking concerns jobs at the bililonaire’s biggest asset, the Whyalla steel mill in South Australia, could be at risk.
The Australian Manufacturing Workers Union national secretary Steve Murphy said the union’s priority was to ensure the steel mill’s 5,000-plus workforce was paid on time and had secure work.
“We are working with unions within the sector to focus on making sure these workers’ entitlements are not at risk,” Mr Murphy said.
Despite the dispute between GFG and Greensill, a spokesman for GFG Alliance said the group was operationally strong.
“While Greensill’s difficulties have created a challenging situation, we have adequate funding for our current needs. Through our global efficiency drive we’ve improved our operations’ margins with most of our major businesses generating positive cashflows.”
The spokesman said the company would manage cash carefully while discussions were underway to secure alternative long-term funding proposal given securing a deal could take some time.
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The stoush between GFG and Greensill comes as potential parties to Greensill’s administration line up lawyers and advisors to duke it out over where responsibilities for the billions of the group’s debts lie.
Those parties are expected to include Greensill’s insurers at Tokio Marine and potentially companies under the GFG Alliance umbrella.
Legal sources said it could be possible for Mr Gupta’s various businesses with contracts with Greensill to take the failed financier to court to have the contracts torn up over a breach of contract. If GFG gets out of its contracts it would provide its businesses with $5 billion in free cash for it to continue operating.
Already Greensill has lined up a serious litigation team with Allen & Overy and Herbert Smith Freehills, while Apollo is being assisted by Arnold Bloch Leibler.
