Government prepares special managers for Liberty Steel SSUK

The government signals readiness to appoint special managers to run Liberty Steel’s SSUK plants if they enter administration.

Ministers line up plan to run Liberty Steel South Yorkshire plants in administration

Ministers have lined up special managers to run Liberty Steel’s South Yorkshire operations if SSUK enters administration, a development revealed at London’s high court. The move shows the government is prepared to step in quickly to keep the Rotherham site and the Stocksbridge plant running, protecting about 1,450 jobs. Creditors have petitioned for a winding up order while SSUK pursues a pre-pack administration that would let owner Sanjeev Gupta attempt to retain control during the insolvency process. The court was told the government’s official receiver could lead a sales process if administration begins.

Court documents show a Department for Business and Trade letter noting the official receiver’s readiness to carry out a sale if administration occurs. Judge Sally Barber warned there is much at stake and said ministers would need a formal decision before any move. The creditors later disclosed that a draft application for a special manager had already been prepared. The proceedings occur as SSUK has posted large losses and the wider Greensill-linked probe creates uncertainty for Gupta’s group. The plants in Rotherham and Motherwell have not produced steel for about a year due to working capital issues, though salaries have continued to be paid. The case highlights tensions in a UK steel sector hit by pandemic disruption and shifting global metal supply.

The court case shows how quickly the state can pivot when a factory is at risk. The government’s willingness to appoint a special manager signals a belief that some industrial assets deserve protection beyond private creditors. It also raises questions about transparency and creditor rights, because a pre-pack deal may keep Gupta in control while lenders bear losses.

This situation sits at the crossroads of finance and industrial policy. The Greensill collapse, the SFO investigations, and a government intervention elsewhere in the steel sector create a broader pattern in which public authorities weigh in on strategic assets. If ministers clear a manager, it could mark a new normal for how the state defends critical manufacturing; if not, creditors may press for liquidation. Either path will ripple through workers, suppliers and regional economies.

Highlights

The next court steps will reveal how far the state is prepared to go to shield industrial capacity.