< Our Experience | Transactions | Due Diligence

Probing a global steel maker


Our client was invited to join a syndicate providing finance to a fast-growing steel manufacturer claiming production assets worth $20bn across several regions. Some national governments had already extended financial support. But rumours about the group had begun to emerge. Greyhawk was instructed to investigate the credibility of these rumours and to identify other risks regarding the company’s debt position, market reputation and probity.


Greyhawk investigated the group’s activities in Australia, France, India, the UK, and the US. We identified examples of deals not completing, legal action by trade creditors and adverse findings by courts and regulatory bodies. Through in-depth analysis of disclosure by over fifty group companies we demonstrated a pattern of poorly documented related party transactions and intra-group lending. We discovered a loophole in UK filing requirements, which had enabled the group to delay filing financial statements and conceal its true financial position. We also raised significant concerns over the group’s relationship with a “shadow banking” lender. A programme of targeted interviewing with market participants uncovered doubts about the long-term viability of the group and the credibility of its CEO.


Informed by Greyhawk’s intelligence, our client declined to lend to the group. Over subsequent months and years, the group’s activities came under increasing scrutiny. Eventually, multiple creditors brought claims against the group and its operations were investigated by national law enforcement agencies.