Gupta s SSUK liquidation

This week collapse of the tycoon’s Yorkshire operations brings relief to some and echoes insolvency steps at fifteen of his companies

From Yorkshire to Australia how Sanjeev Gupta's steel empire unravelled

London's high court ruled that Speciality Steel UK should enter compulsory liquidation because it is hopelessly insolvent. Debts run to hundreds of millions of pounds and cash in the account is limited. After the hearing, government appointed managers moved to take control of steel plants in South Yorkshire and to ensure 1,450 workers are paid. Gupta was in Sydney and did not attend the hearing, while Liberty Steel said he was sad but not finished and that he aims to bid to buy back SSUK with backing from BlackRock.

Across the Gupta Family Group Alliance, other plants in the UK and abroad face the same stress. In Whyalla, Australia, the steelworks were found to have heavy debts and slow production. The national and state governments have stepped in with a support package to keep the plant operating during administration and to help the next owner upgrade the facility. A Serious Fraud Office investigation in the UK continues to shadow the group, and creditors across several countries are rethinking their exposure as more assets face restructuring or bankruptcy. Critics point to long standing mismanagement and under investment by Liberty Steel, while Gupta and his backers cite a tough global market and rising costs for decarbonisation.

The Gupta saga exposes a business model built on aggressive asset buying and debt leverage. When markets tighten and promises stall, the rhetoric of turnaround fades and creditors demand transparency. Governments are forced to choose between protecting jobs and protecting public funds, a pressure cooker that tests political futures as much as balance sheets.

Going forward, the story will test whether rescue money can translate into lasting improvements or simply delay a costly restructuring. If governance improves and financing becomes credible, parts of the steel empire might recover. If not, communities may face further job losses and taxpayers could shoulder the cost of keeping strategic assets afloat.

Highlights

The next chapter will test whether rescue funding translates into lasting repairs or merely buys time.