Sanjeev Gupta bids to restructure his Speciality Steel division in the UK
Steel tycoon Sanjeev Gupta is reportedly applying for court approval for a restructuring of the bulk of his remaining operations in Britain.
Sky News says Liberty Steel, which is Gupta’s privately owned company, is launching a restructuring plan for its Speciality Steel division in the UK (SSUK) which would significantly cut its debts.
It is understood there would be no impact on the 1,500 employees of the Speciality Steel business in the UK.
But Liberty Steel creditors would be compromised under the plan, which will require the approval of 75% of them in order to be approved by the court.
If the move goes ahead, it would follow a series of restructuring and cost-cutting measures by Gupta’s empire in recent years.
In 2021, he asked for £170m from the Government in emergency assistance, but this request was rejected.
Jeffrey Kabel, Liberty Steel group chief transformation officer, told Sky News: “After making significant progress to stabilise the business and refocus it on high value specialist products, we’re now addressing the debt position of the company to create a stronger speciality business going forward.
The SSUK division operates across sites including Rotherham in south Yorkshire and Bolton in Lancashire. It manufactures steel products for use in sectors such as aerospace, automotive and oil and gas.
