News: Liberty boss calls judge's liquidation decision "irrational"
Liberty Steel has called a High Court decision to send its speciality steel business into compulsory liquidation "irrational" and says it put forward plans to create a "sustainable operational platform."
Rothbiz reported this week that a judge has approved an application from creditors to place the business, ehich has operations in Rotherham and Stocksbridge, into compulsory liquidation.
Official Receiver, Gareth Allen, has been appointed as liquidator with Teneo Financial Advisory Limited appointed as Special Managers of the company to assist the Official Receiver with the liquidation.
Jeffrey Kabel, LIBERTY Steel Group’s Chief Transformation Officer, said: “The decision to push Speciality Steel U.K. into compulsory liquidation, especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery is irrational.
"The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight.
"Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.
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"LIBERTY has pursued all options to make its SSUK viable, including efficiency improvements, reorganisations, customer support, several attempts to find a buyer for the business and intensive negotiations with creditors to restructure debt liabilities. LIBERTY’s shareholder has invested nearly £200mn, recognising the vital role steel plays in supplying the UK’s strategic defence, aerospace and energy industries.
"GFG will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver. GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment. GFG’s other significant business interests in the UK remain unaffected.
"Despite many challenges facing the group and the difficult market conditions, GFG has invested over £2 billion into the UK economy since 2013, ensuring the survival of many GFG businesses despite operating losses and safeguarding thousands of jobs that would otherwise have been lost.”
Liberty's plan is reported to have been a pre-pack administration deal which would have seen creditors lose out.
MP for Penistone & Stocksbridge Marie Tidball, said: "I know that steelworkers and other employees will have a number of queries about what happens next, and I will continue to work closely with Community Union around ongoing job security.
"From day one, I have advocated for the importance of the Speciality Steel UK sites as part of South Yorkshire's Steel Corridor, and the need to secure their future.
"It is reassuring to hear that the Secretary of State for Business, Jonathan Reynolds, has described our steelworks and its workers as important strategic assets for the UK, and wants them to have a strong future as part of the UK's overall steel strategy.
"It is positive to hear that that the Government has already received approaches from "independent third parties who have expressed an interest in returning some or all of the sites to steel making," according to a letter from the Department for Business and Trade entered in court.
"I want to thank all our local steelworkers and their families for all their hard work and patience throughout this difficult process."
Liberty Steel website
Images: Liberty Steel
Rothbiz reported this week that a judge has approved an application from creditors to place the business, ehich has operations in Rotherham and Stocksbridge, into compulsory liquidation.
Official Receiver, Gareth Allen, has been appointed as liquidator with Teneo Financial Advisory Limited appointed as Special Managers of the company to assist the Official Receiver with the liquidation.
Jeffrey Kabel, LIBERTY Steel Group’s Chief Transformation Officer, said: “The decision to push Speciality Steel U.K. into compulsory liquidation, especially when we have support from the world’s largest asset manager to resume operations and facilitate creditor recovery is irrational.
"The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight.
"Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution.
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"LIBERTY has pursued all options to make its SSUK viable, including efficiency improvements, reorganisations, customer support, several attempts to find a buyer for the business and intensive negotiations with creditors to restructure debt liabilities. LIBERTY’s shareholder has invested nearly £200mn, recognising the vital role steel plays in supplying the UK’s strategic defence, aerospace and energy industries.
"GFG will now continue to advance its bid for the business in collaboration with prospective debt and equity partners and will present its plan to the official receiver. GFG continues to believe it has the ideas, management expertise and commitment to lead SSUK into the future and attract major investment. GFG’s other significant business interests in the UK remain unaffected.
"Despite many challenges facing the group and the difficult market conditions, GFG has invested over £2 billion into the UK economy since 2013, ensuring the survival of many GFG businesses despite operating losses and safeguarding thousands of jobs that would otherwise have been lost.”
Liberty's plan is reported to have been a pre-pack administration deal which would have seen creditors lose out.
"From day one, I have advocated for the importance of the Speciality Steel UK sites as part of South Yorkshire's Steel Corridor, and the need to secure their future.
"It is reassuring to hear that the Secretary of State for Business, Jonathan Reynolds, has described our steelworks and its workers as important strategic assets for the UK, and wants them to have a strong future as part of the UK's overall steel strategy.
"It is positive to hear that that the Government has already received approaches from "independent third parties who have expressed an interest in returning some or all of the sites to steel making," according to a letter from the Department for Business and Trade entered in court.
"I want to thank all our local steelworkers and their families for all their hard work and patience throughout this difficult process."
Liberty Steel website
Images: Liberty Steel
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