The owner of steel and aluminium plants in Scotland has assured ministers his businesses are still profitable despite the collapse of lenders Greensill Capital.
The lenders went into administration earlier this month, raising concerns for a number of their customers.
Greensill lends money to businesses so they can pay their suppliers. One of its major customers is Sanjeev Gupta’s GFG Alliance, which owns Liberty Steel.
The multi-national GFG Alliance employs about 3,000 people in the UK
It owns the Dalzell and Clydebridge steel works, the Lochaber aluminium smelter, the hydro-electric power station at Fort William, Jahama Highland Estates and Shand Cycles.
On Wednesday, Rural Economy Secretary, Fergus Ewing, updated MSPs on the implications of Greensill’s collapse for companies in Scotland.
The minister said he had spoken with Mr Gupta and trade union representatives about the situation.
Mr Ewing said: “[Mr Gupta] was open about challenges posed by the collapse of Greensill but also emphasised the underlying operational health of GFG’s Scottish operations.
“He indicated that market demand is strong and metals prices are currently among the best seen in over a decade.
“Hence, GFG’s Scottish steel and aluminium businesses are presently on a profitable footing, according to Mr Gupta.
“Mr Gupta told me the group has adequate funding for its current needs while they progress refinancing.
“He nevertheless confirmed that stabilising the finances of the GFG Alliance in the near term is important to its future activities, including those in Scotland.”
Mr Ewing said trade union representatives also painted a positive picture of demand in the metals sector.
Some GFG companies have received loans from the Scottish government, including a £7 million investment bank loan for the Dalzell steel plant.