UK's Third-Largest Steelworks Plunged into Liquidation Amid Controversy
Speciality Steels UK, part of Sanjeev Gupta's GFG Alliance, has entered compulsory liquidation following a court ruling, putting 1,500 jobs at risk. Liberty Steel contested the decision, which it deemed 'irrational' given alternative solutions involving investment from BlackRock for a potential business buyback.
- Country:
- United Kingdom
Speciality Steels UK, ranking as the nation's third-largest steelworks and part of Sanjeev Gupta's business empire, has been compelled into liquidation. The UK Insolvency Service confirmed its role in acting as the liquidator following a decisive court ruling, leaving 1,500 jobs hanging in the balance.
The court appointed Matthew James Cowlishaw, Hywel Phillips, and Robert Fishman of Teneo Financial Advisory Limited to assist as Special Managers during this process. Liberty Steel expressed severe disapproval, labeling the decision irrational, especially with backing from global asset manager BlackRock to potentially revive operations and aid creditor recovery.
Faced with opposition, Liberty's legal team sought a court adjournment to explore a 'pre-pack administration' strategy, aiming for an asset buyback. Despite exhaustive efforts by GFG Alliance, which included organizational improvements and buyer negotiations, the steel giant now faces a turbulent path following the court's liquidation mandate.
(With inputs from agencies.)
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