News: Liberty Steel insolvency case pushed back as sale talks continue
A court case that could have led to Liberty's Speciality Steel business going into insolvency has been adjourned until July.
Rothbiz reported on a winding-up order being due this week regarding Liberty Speciality Steel, which has operations in Rotherham and Stocksbridge..
The hearing has been adjourned to July 16, with discussions ongoing to keep the business going - including a potential sale of the business.
Jeffrey Kabel, LIBERTY Steel Chief Transformation Officer said: “Today's adjournment is a positive development, allowing us the necessary time to finalise options including a sale of the business while we continue to pursue our debt restructuring efforts.
"We remain committed to finding the right solution that preserves EAF steelmaking in the UK, a vital national asset serving strategic supply chains.
"SSUK has been involved in complex debt restructuring since the collapse of Greensill Capital in 2021 restricting its access to capital. However, like all steel producers in the UK, SSUK has faced long-standing competitiveness challenges dating back decades.
"Throughout LIBERTY’s ownership of SSUK its shareholder has consistently supported the business, investing nearly £200 million in loss funding and salaries over the past four years, even as significant portions of the business remained inactive.
"We recognise that change is essential to set the business on a positive trajectory and provide certainty for our creditors, employees, and stakeholders.
"We will utilise the time afforded by the adjournment to engage in intensive discussions with a view to achieving an outcome which best serves the strategic interests of the UK, the South Yorkshire community, and the broader UK steel sector.”
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Earlier this month, Liberty pulled a restructuring plan before it could be judged in court as it was apparent that it did not have the backing from creditors.
Roy Rickhuss CBE, General Secretary of steelworkers’ union Community, said: “Our members at Liberty Steel have endured far too much turbulence and uncertainty over recent years as a result of the erratic and irresponsible way the company has been run. Failed restructuring plans and broken promises from the company have become a familiar, demoralising pattern, and things simply can’t go on as they are.
“Ever since the collapse of Greensill Capital, we have worked with the company in good faith, even when refinancing deadlines have been missed. Our patience has now run out.
“Liberty Steel’s plants are strategically important sites for the UK steel industry and the country as a whole, and these assets must be secured.
“New, responsible ownership is needed to give the business the brighter future it needs and deserves, and that can only be achieved with a decisive change at the top. Enough is enough – Sanjeev Gupta must invest in the business or step aside.”
Marie Tidball MP, Labour Member of Parliament for Penistone and Stocksbridge, added: “I have listened to my constituents in Stocksbridge and agree with them that it is time for Gupta to go. He has run out of road; his chaotic ownership must end now. Our Stocksbridge Speciality Steels site needs new, competent ownership to maximise its potential, so that the business has a real chance for success.
“As I said in Parliament earlier today, Stocksbridge Speciality Steels has strategically significant, highly specialist capability, to produce world-leading steel, crucial to our national defence, aerospace, and energy industries. The site employs 650 people and has an excellent skills training centre.
“I know the capability of the site, the extraordinary ability of the workforce and the exceptional quality steel produced in Stocksbridge. What we need now is a new owner to come forward and restore the glory of a site which has proudly made steel in our constituency for over 180 years. This is an exciting investment opportunity, and these works are part of the strategically important South Yorkshire Steel Corridor.”
Liberty Steel website
Images: Liberty
Rothbiz reported on a winding-up order being due this week regarding Liberty Speciality Steel, which has operations in Rotherham and Stocksbridge..
The hearing has been adjourned to July 16, with discussions ongoing to keep the business going - including a potential sale of the business.
Jeffrey Kabel, LIBERTY Steel Chief Transformation Officer said: “Today's adjournment is a positive development, allowing us the necessary time to finalise options including a sale of the business while we continue to pursue our debt restructuring efforts.
"We remain committed to finding the right solution that preserves EAF steelmaking in the UK, a vital national asset serving strategic supply chains.
"SSUK has been involved in complex debt restructuring since the collapse of Greensill Capital in 2021 restricting its access to capital. However, like all steel producers in the UK, SSUK has faced long-standing competitiveness challenges dating back decades.
"Throughout LIBERTY’s ownership of SSUK its shareholder has consistently supported the business, investing nearly £200 million in loss funding and salaries over the past four years, even as significant portions of the business remained inactive.
"We recognise that change is essential to set the business on a positive trajectory and provide certainty for our creditors, employees, and stakeholders.
"We will utilise the time afforded by the adjournment to engage in intensive discussions with a view to achieving an outcome which best serves the strategic interests of the UK, the South Yorkshire community, and the broader UK steel sector.”
Advertisement
Earlier this month, Liberty pulled a restructuring plan before it could be judged in court as it was apparent that it did not have the backing from creditors.
Roy Rickhuss CBE, General Secretary of steelworkers’ union Community, said: “Our members at Liberty Steel have endured far too much turbulence and uncertainty over recent years as a result of the erratic and irresponsible way the company has been run. Failed restructuring plans and broken promises from the company have become a familiar, demoralising pattern, and things simply can’t go on as they are.
“Ever since the collapse of Greensill Capital, we have worked with the company in good faith, even when refinancing deadlines have been missed. Our patience has now run out.
“Liberty Steel’s plants are strategically important sites for the UK steel industry and the country as a whole, and these assets must be secured.
“New, responsible ownership is needed to give the business the brighter future it needs and deserves, and that can only be achieved with a decisive change at the top. Enough is enough – Sanjeev Gupta must invest in the business or step aside.”
Marie Tidball MP, Labour Member of Parliament for Penistone and Stocksbridge, added: “I have listened to my constituents in Stocksbridge and agree with them that it is time for Gupta to go. He has run out of road; his chaotic ownership must end now. Our Stocksbridge Speciality Steels site needs new, competent ownership to maximise its potential, so that the business has a real chance for success.
“As I said in Parliament earlier today, Stocksbridge Speciality Steels has strategically significant, highly specialist capability, to produce world-leading steel, crucial to our national defence, aerospace, and energy industries. The site employs 650 people and has an excellent skills training centre.
“I know the capability of the site, the extraordinary ability of the workforce and the exceptional quality steel produced in Stocksbridge. What we need now is a new owner to come forward and restore the glory of a site which has proudly made steel in our constituency for over 180 years. This is an exciting investment opportunity, and these works are part of the strategically important South Yorkshire Steel Corridor.”
Liberty Steel website
Images: Liberty
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