UK government prepares to take the plant

The government is preparing to control the third largest steelwork in the UK in the bid to save the business and protect 1,500 jobs.

One court has heard that managers have been line up to handle special steels UK (SSUK) in South Yorkshire.

The future of the company, which uses scrap metal for steel manufacture, has been uncertain for some time and may be a wound on its large pile of unpaid loans.

This comes when ministers confiscated control of British Steel, Scanthorape, earlier this year to prevent the final plant in the UK from closing the virgin steel.

SSUK is the only electric arch furnace home in the UK which is more energy efficient and is considered important in industry’s energy infection.

But the company has faced financial troubles for some time and has been unable to buy the scrap metal required to produce steel after the collapse of the main lender of Liberty Steel and unpaid debt.

A High Court judge is ready to decide SSUK’s fate.

The lawyer of Sanjeev Gupta, executive chairman of the GFG coalition, who owns Liberty, warned that a curved order can mean the end of steel production in the plant.

He demanded a adjournment to allow the company to complete a administration process, without the need for any government intervention.

But for the creditors, the lawyers produced a letter from the government to the court, assuring that the steelworks would take steps to handle the steelworks if necessary.

The creditors owed hundreds of crores of pounds, a court filed a petition to force the company into liquidation, so that the property of Liberty Steel could be sold to pay the loan.

Mr. Gupta, whose firm is a collection of businesses in energy, trade and steel, has faced investigation since the collapse of GFG’s chief lender Grinsil Capital 2021, after giving employment to thousands of people in the UK.

Sources close to Steel Tycoon have confirmed reports that interaction with investment giant Blackrock was running to provide a new funding to buy a managed or “pre-pack” administration.

The judge on Tuesday expressed reservation, saying that there was no certainty what would happen to the company, demanding creditors after compulsory liquidation.

“What happens to trading after speaking of magic words?” He asked, referring to the formal grant of a curved petition. “Just at stake is too much.”

The case has been postponed and sent to the High Court.

While the government is a supporter of steel, it is not a big fan of Mr. Gupta and has repeatedly rejected its appeal for direct government support.

So now the option is an ineffective.

Allow Mr. Gupta to try and keep control of a administration, although a administration – for lenders whose loans will be written to a large extent – but zero cost for the government.

Or help your creditors fix what their money is left by taking a harm-making steel plant, although it is found for a buyer for a long time and sales income is excluded.

The government said it would “closely monitor the development around Liberty Steel, including any public hearing, which is a case for the company”.

“We are supporting the official receiver so that they are ready to take the necessary steps, the company must enter the mandatory liquidation,” a statement said.

Liberty Steel stated that it assumes that “the commercial solutions supported by the major private capital, the UK taxpayers or unnecessary uncertainty provide the best results for businesses, its employees and all stakeholders”.

In 2019, a government intervention in Scanthorpe cost Treasury £ 600 meters during 10 months, which was taken to find Chinese buyer jinge and since April, the government accused Jing of planning to close its furnaces after running the day -day operations back.

The government has said that there is a search for a commercial partner, but nationalization of the plant is the most likely option.