Sanjeev Gupta, CEO and chairman of mining and metals conglomerate GFG Alliance, will seek court approval for restructuring the bulk of Liberty Steel's (his privately owned company) remaining operations in Britain.
Sky News has reported that Liberty Steel is launching a restructuring plan for its Speciality Steel division in the UK (SSUK) that would ‘significantly reduce its debts’.
People close to the process said there would be no impact on the 1,500 employees of the Speciality Steel business in the UK. Liberty Steel creditors would be compromised under the plan, which will require the approval of 75% of them in order to be approved by the court.
An unnamed source said the move was likely to prove controversial following a series of restructuring and cost-cutting measures from Gupta's portfolio in recent years. In 2021, he sought £170m from the government in emergency assistance, but the request was rejected.
"After making significant progress to stabilise the business and refocus it on high value specialist products, we're now addressing the debt position of the company to create a stronger speciality business going forward.''
Jeffrey Kabel, chief transformation officer, Liberty Steel group
In a statement issued to the media, Jeffrey Kabel, Liberty Steel group chief transformation officer, said: "After making significant progress to stabilise the business and refocus it on high value specialist products, we're now addressing the debt position of the company to create a stronger speciality business going forward. Our plan, which is backed by customers, is the best route forward for all stakeholders and we're confident in winning the support of our creditors for the essential actions required to complete SSUK's recovery."
The SSUK division operates across sites including at Rotherham in south Yorkshire and Bolton in Lancashire.
Source: Sky News