GP Global in talks to sell its assets to stay afloat

Dubai-based commodity trading firm GP Global has confirmed it is in talks to sell off assets as part of its restructuring process and said it has appealed to its creditors not to seek liquidation.

The company, which was forced into a financial restructuring in July, said potential investors have "indicated a high level of interest in GP in its totality or in a collection of its strategic assets".

"It is in the creditors' best interest to allow GP Global to undertake a complete business restructuring exercise and not to opt to liquidate," the company said.

GP Global said it has kicked off the sales process and has received an encouraging response from interested parties. "These are very sensitive negotiations and we will report on progress as the process evolves," it said.

The firm said it is still doing a "decent amount of business" and that its UAE bunkering terminals in Fujairah and Hamriyah are running at full capacity. The terminals have 412,000m³ (2.6mn bl) and 204,000m³ of storage capacity, respectively. The firm also owns a 7,600 b/d refinery in Sharjah which produces naphtha, gasoil and fuel oil and is a major supplier of bitumen to India. It acquired a 50,000 t/yr lubricant blending plant from Nigeria-based Grand Petroleum in April this year.

GP Global trades oil, lubricants, steel, minerals and agricultural products. It has been noticeably absent from bitumen trading in European, Mediterranean, Mideast Gulf and Asia-Pacific markets since it began its restructuring process.

By Keyvan Hedvat