Winding-up petitions dropped against steel giant
Two winding-up petitions have reportedly been dropped against Liberty Steel, granting a partial reprieve for owner Sanjeev Gupta.
The complex steel manufacturer, which has operations across the country including Rotherham, Stocksbridge, Scunthorpe, and West Bromwich, is looking to recover from a turbulent period that began with the collapse of its key lender Greensill Capital.
Sky News revealed the legal claims, which were first brought about in March 2021, were withdrawn last week. The petitions looked to place the steel arm and another division into insolvency as Gupta is thought to owe creditors more than $1bn.
It also said the winding-up petitions named Citigroup as acting for investors such as Credit Suisse.
Gupta’s GFG Alliance, parent firm of Liberty Steel has recently been involved in a battle with Alvarez & Marsal, over the administration of Aartee Bright Bar.
The firm had been in court trying to overturn the administration with its challenge was rejected by the high Court in Manchester and Aartee was placed into voluntary liquidation, allowing a £13m sale to take place with Barrett Steel.
The firm claims that Willenhall-based Aartee was “wrongly” put into administration by its main creditor FGI, who appointed Alvarez & Marsal to handle the insolvency process.
GFG has planned to integrate Aartee’s operations into its Liberty Steel brand to save 250 viable UK steel jobs.
