Gupta plan for UK steel arm

Sanjeev Gupta seeks an independent structure for Liberty Steel UK to avert a government led fire sale.

Gupta hands UK steel arm to family in bid to safeguard Liberty

Sanjeev Gupta is seeking to refinance Liberty Steel UK through a pre-pack administration that would place Liberty Steel Speciality Steels UK under a trust-like structure for the benefit of his family. The move comes as SSUK faces the risk of compulsory liquidation, putting around 1,500 jobs at sites across South Yorkshire at stake. A High Court hearing confirmed the government is prepared to step in if the company enters insolvency, with a formal process that could see a special manager appointed by the Official Receiver.
Begbies Traynor is assisting on the pre-pack plan. If liquidation proceeds, the Official Receiver would take control of SSUK’s affairs and a government letter signaled readiness to oversee the process. The idea is to keep some or all sites in steelmaking, with independent parties reportedly expressing interest in taking over operations. Gupta has suggested the structure would be independent and well-governed, while talks with investors and lenders continue behind the scenes. Financing support has been reported from a major asset manager and other backers, though details remain fluid.

The plan highlights how private rescue efforts can collide with public interests in a strategically sensitive industry. A family-backed, ring-fenced structure could offer certainty for Gupta’s group, but it raises questions about governance, accountability, and who ultimately bears risk if liabilities resurface. The involvement of government authorities, the potential for a pre-pack sale, and the scale of workers affected underscore the broader vulnerability of UK steel assets amid high energy costs and global competition. If the state steps in, it could reshape expectations around private equity and national industrial policy.

Highlights

The next court hearing will test whether private rescue can coexist with public duty.