INSOLVENCY: Court declares Liberty Steel’s Speciality Steel UK insolvent; over 1,400 workers impacted but assured wages
The UK’s third-largest steelworks has come under government control after a London insolvency court ordered the winding up of Speciality Steel UK (SSUK), part of the Liberty Steel metals empire owned by Indian-origin tycoon Sanjeev Gupta, according to reports, reported gujaratsamachar.com.
A high court judge ruled that Gupta’s firm had “no prospects of repaying debts of several hundred million pounds”, declaring it insolvent. The company, which manufactures steel from scrap metal, will now be overseen by the official receiver – a government-appointed liquidator – alongside special managers from consultancy firm Teneo.
Around 1,450 workers in Rotherham and Sheffield have been affected, though officials have assured payment of August wages and pending pension contributions
According to the BBC, the court found SSUK to be “hopelessly insolvent”, with only £600,000 in the bank against a monthly wage bill of £3.7 million. The ruling also noted that its parent group was already entangled in insolvency proceedings across 15 entities in nine jurisdictions.
The collapse marks another major blow to Gupta’s once-sprawling metals empire, which had expanded rapidly but came under intense financial strain in recent years. While the government move secures short-term stability for employees, the long-term future of the steel plants remains uncertain.
