(Bloomberg) -- Credit Suisse Group AG won the green light to pursue its court battle against companies controlled by Sanjeev Gupta’s GFG Alliance, in a dispute over more than a billion dollars in debts to the bank.

A London judge said that the Swiss lender’s attempt to wind up three of Gupta’s firms can proceed, saying the GFG companies couldn’t rely on rules designed to protect companies during the coronavirus pandemic. 

“The demands made on the companies over a year ago have not been met,” Judge Nicholas Briggs said in his ruling. “It is likely that a winding up order will be made.” 

Credit Suisse turned to court after talks with the steel magnate over a broader restructuring of its debts stalled. At stake is a large swathe of the tycoon’s metals empire, which is heavily indebted to the bank.

A GFG spokesman said the court proceedings will continue in the fall or winter of this year. “We will defend our position vigorously and we have evidenced our commitment to our UK businesses with injections of shareholder capital since October 2021,” he said.

“In the meantime, we continue to negotiate a consensual debt restructuring in the best interest of all stakeholders, not least the thousands of employees that rely on our businesses in the UK and around the world.”

Credit Suisse declined to comment.

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