Liberty Steel is making a last-ditch attempt to save its plants in and around Rotherham and Sheffield, the BBC reports.
The court on May 21 may force Liberty Speciality Steels UK to bury itself due to debts. This will put 1,450 jobs at risk if the company cannot gain time, postponed the review. Creditors, including Harsco Metals, have filed a motion to force the liquidation of the company so that Liberty's assets can be sold to pay the debt.
Liberty Steel told the BBC that negotiations with creditors are ongoing, and the company remains committed to doing everything possible to support the specialty steel business.
Sources in the department, in turn, noted that the authorities are not ready to intervene to save Liberty or any of its subsidiaries to repay debts. However, the government may consider this possibility if the courts force this business to declare bankruptcy.
Roy Rickhass, general secretary of the steelworkers' union Community, said his members had experienced too much turbulence and uncertainty in recent years at the company "as a result of the unstable and irresponsible way the company is run." According to him, failed restructuring plans and unfulfilled promises have become a familiar, demoralizing pattern.
According to Rikhass, a new responsible owner is needed to ensure the future.
A spokesman for the Ministry of Business and Trade said the government continues to closely monitor Liberty Steel's developments, including any public offerings deemed to be the company's business. According to him, as a result, Liberty should lead commercial decisions regarding the future of its companies. The department hopes that she will succeed in her plans to continue on a stable basis.
In November last year, Liberty Steel applied to the court for approval of the restructuring of its British special steel division to reduce its obligations. However, last week it was announced that the company was unable to reach an agreement with creditors.
