Nearly 1,500 workers in Rotherham and Sheffield now face an unclear future after the government took ownership of the third-largest steelworks in the UK.
Speciality Steels UK (SSUK), a division of the contentious billionaire Sanjeev Gupta’s Liberty Steel metals empire, owes creditors hundreds of millions of pounds, and insolvency courts granted their request for a mandatory winding up order.
The official receiver, a government-appointed liquidator, and special management from consulting firm Teneo will now take control of the plant, which turns scrap metal into steel. While a buyer is being sought, the government has agreed to pay the plant’s ongoing expenses and wages.
According to Jeffrey Kabel, the chief transformation officer at Liberty Steel, they “presented a very good case” and he was “really disappointed” by the High Court’s ruling.
We are by far the most qualified company to manage this enterprise. We have operated it for ten years. It took a great deal of blood, sweat, and money,” he remarked.
The decision would “impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution,” according to a separate statement from Mr. Kabel.
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