UK drops guarantees from £400m of Greensill loans to Gupta-linked firms

State-owned British Business Bank makes decision after investigation of lending practices

The government has dropped guarantees made on £400m of loans from Greensill Capital to companies linked to the embattled metals tycoon Sanjeev Gupta.

The state-owned British Business Bank (BBB) said on Monday that it had “terminated” guarantees backing Greensill’s loans to large businesses after investigating its lending practices.