News: Liberty Steel court case adjourned again
A court case that could have led to Liberty's Speciality Steel business going into insolvency has been adjourned again.
A winding-up order was due to be decided this week regarding the company which has operations in Rotherham and Stocksbridge.
An initial hearing in May was adjourned to July, with discussions ongoing to keep the business going - including a potential sale of the business.
Marie Tidball, MP for Stocksbridge confirmed that the case has been adjourned again.
Earlier this year, 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.
Liberty signed a new framework agreement in April 2024 with its major creditors that would enable it to consolidate its UK steel businesses "under a new entity with a simpler structure, a strong balance sheet and greater access to third party finance and investment."
In November 2024, Liberty sought approval through the courts for the restructuring which would reduce the company's debts but needs the approval of the majority of creditors.
The UK company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks.
Court documents from February regarding Greensill creditors and Speciality Steel UK Ltd (SSUK) show that the Liberty company has a debt with them of approximately £289m. The debts owed to Greensill creditors in respect of the activities of the GFG Group amount, in broad terms, to some US$4 billion.
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One creditor is Harsco, which operates a large site in Rotherham under its SteelPhalt brand. Court documents show that Harsco issued a winding-up petition against Liberty in 2024 in an effort to recover £4m that it is owed, along with machinery "for which it has not been paid and which it would like back."
The Caseboard website has now added Greensill Capital (UK) Limited (In Administration) to the list of creditors supporting Harsco with its winding-up petition against Liberty.
Marie Tidball, MP for Penistone and Stocksbridge, said: "I hope all options are on the table to secure our Stocksbridge site, whilst parties reach a conclusion at the next stage of the court case. We cannot see this nationally important asset and its skilled workforce broken up longer term.
"My immediate priority now will be securing pensions for Stocksbridge steelworkers, as local workers have faced 10 months without employer pension contributions. I raised the need for urgent reassurances in respect to pension payments in the House of Commons earlier this week.
"I will be writing urgently to Aviva, The Department for Business and Trade, the Department for Work and Pensions and the Pension Regulator, to ensure all Stocksbridge steelworker pensions are secured.
"I will always continue to fight to protect our site and its jobs, as well as its strategic capability."
In parliament, the MP discussed the uncertainty at Liberty which "means that pension contributions have not been paid to the skilled workforce for 10 months, causing significant worry and anxiety for 600 local steelworkers."
Speaking to The Guardian, a Liberty Steel spokesperson said: "Today’s resolutions and adjournment provides additional time to finalise options for SSUK while continuing our broader debt restructuring efforts.
"We remain committed to identifying a solution that preserves electric arc furnace (EAF) steelmaking in the UK — a critical national capability supporting strategic supply chains.
"SSUK has been engaged in complex debt restructuring since the collapse of Greensill Capital in 2021, which significantly constrained its access to capital.
"Throughout Liberty’s ownership, the shareholder has consistently supported the business, contributing nearly £200m in loss funding and payroll over the past four years — even during periods when significant portions of the business remained non-operational."
Liberty Steel website
Images: Google Maps
A winding-up order was due to be decided this week regarding the company which has operations in Rotherham and Stocksbridge.
An initial hearing in May was adjourned to July, with discussions ongoing to keep the business going - including a potential sale of the business.
Marie Tidball, MP for Stocksbridge confirmed that the case has been adjourned again.
Earlier this year, 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.
Liberty signed a new framework agreement in April 2024 with its major creditors that would enable it to consolidate its UK steel businesses "under a new entity with a simpler structure, a strong balance sheet and greater access to third party finance and investment."
In November 2024, Liberty sought approval through the courts for the restructuring which would reduce the company's debts but needs the approval of the majority of creditors.
The UK company, part of Sanjeev Gupta's GFG Alliance, was hit by the collapse of Greensill, a specialist in invoice financing that operated with less regulation than the traditional banks.
Court documents from February regarding Greensill creditors and Speciality Steel UK Ltd (SSUK) show that the Liberty company has a debt with them of approximately £289m. The debts owed to Greensill creditors in respect of the activities of the GFG Group amount, in broad terms, to some US$4 billion.
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One creditor is Harsco, which operates a large site in Rotherham under its SteelPhalt brand. Court documents show that Harsco issued a winding-up petition against Liberty in 2024 in an effort to recover £4m that it is owed, along with machinery "for which it has not been paid and which it would like back."
The Caseboard website has now added Greensill Capital (UK) Limited (In Administration) to the list of creditors supporting Harsco with its winding-up petition against Liberty.
Marie Tidball, MP for Penistone and Stocksbridge, said: "I hope all options are on the table to secure our Stocksbridge site, whilst parties reach a conclusion at the next stage of the court case. We cannot see this nationally important asset and its skilled workforce broken up longer term.
"My immediate priority now will be securing pensions for Stocksbridge steelworkers, as local workers have faced 10 months without employer pension contributions. I raised the need for urgent reassurances in respect to pension payments in the House of Commons earlier this week.
"I will be writing urgently to Aviva, The Department for Business and Trade, the Department for Work and Pensions and the Pension Regulator, to ensure all Stocksbridge steelworker pensions are secured.
"I will always continue to fight to protect our site and its jobs, as well as its strategic capability."
In parliament, the MP discussed the uncertainty at Liberty which "means that pension contributions have not been paid to the skilled workforce for 10 months, causing significant worry and anxiety for 600 local steelworkers."
Speaking to The Guardian, a Liberty Steel spokesperson said: "Today’s resolutions and adjournment provides additional time to finalise options for SSUK while continuing our broader debt restructuring efforts.
"We remain committed to identifying a solution that preserves electric arc furnace (EAF) steelmaking in the UK — a critical national capability supporting strategic supply chains.
"SSUK has been engaged in complex debt restructuring since the collapse of Greensill Capital in 2021, which significantly constrained its access to capital.
"Throughout Liberty’s ownership, the shareholder has consistently supported the business, contributing nearly £200m in loss funding and payroll over the past four years — even during periods when significant portions of the business remained non-operational."
Liberty Steel website
Images: Google Maps
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