A Liberty Steel official called the forced liquidation of SSUK ‘irrational’
Liberty Steel's transformation director called the forced liquidation of Speciality Steel UK (SSUK) by the decision of the London High Court "irrational," according to Kallanish learns.
Jeffrey Cable says in a statement that this decision "especially when our support from the world's largest asset manager in resuming operations and facilitating debt collection from creditors is irrational."
Administration will now begin in the company. He was placed under the control of special managers appointed by an official representative of the Government.
Earlier, in November 2024, SSUK announced a restructuring, and in the same month, consideration of the liquidation petition was postponed. In May of this year, the next hearing was postponed due to a potential sale. The company's specialized business employs about 1,450 people.
Cabel adds that the plan presented to the court by Liberty's parent company, GFG Alliance, "would attract new investments in the UK steel industry, save jobs and create a sustainable operating platform under a new management structure with independent oversight."
"Instead, liquidation will now entail prolonged uncertainty and significant costs for British taxpayers for settlements and related costs, despite the availability of a commercial solution," he says.
Liberty says it has used all options to make SSUK viable, including increased efficiencies, reorganizations, and customer support. Several attempts were made to find a buyer for the business and intensive negotiations were held with creditors on debt restructuring. The company notes that its shareholder has invested almost 200 million pounds ($268 million).
The company says it will now continue to promote its business application in collaboration with potential debt and equity partners and will present its plan to the official recipient.
"GFG continues to believe that it has the ideas, management experience, and commitment needed to lead SSUK into the future and attract major investments. GFG's other important business interests in the UK remain unaffected," the statement said.
In a separate statement, the UK Steel industry association said the company provides vital steelmaking capacity in the aerospace, defense and energy industries. The Association welcomes this step by the Government.
UK Steel CEO Gareth Stace says: "UK Steel welcomes the government's recognition of the importance of Liberty Speciality Steel's assets and hopes that a new owner will be found quickly and will be able to invest