Liberty Steel SSUK facing court action and rescue talks

A last-ditch bid to save the UK Speciality Steel unit comes as court action looms and officials plan for a possible collapse.

Liberty Steel SSUK Rescue Plan Tests Gupta Resolve

Sanjeev Gupta is pursuing an 11th-hour rescue for Speciality Steel UK, with Begbies Traynor reportedly structuring a pre-pack administration that would wipe out debts and liabilities before a potential buyback by Gupta or associates.

Any deal would hinge on the consent of creditors, including HM Revenue and Customs and UBS, and on the winding-up petition facing SSUK after a supplier’s action. SSUK employs about 1,500 people and runs plants in Rotherham and Stocksbridge, both of which could be affected if liquidation is approved. Government officials have begun contingency planning for a collapse, while regulators pursue Greensill-linked investigations that shadow Gupta’s broader empire.

The case exposes a core tension in UK industry: rescue moves that shift risk from business to lenders while leaving workers and regional economies exposed. A pre-pack can shield a company from immediate debts, but it transfers uncertainty to creditors and the state, raising questions about accountability and long-term viability.

The government’s stance matters. If authorities intervene to keep plants running, it signals a willingness to insulate regional jobs, but it also risks creating a precedent where debt relief becomes a route to state-backed survival for large groups. The ongoing Greensill investigations add to the uncertainty, potentially coloring lenders’ willingness to participate and shaping public debate about corporate governance.

Highlights

The next days will reveal how much steady hands investor risk and regional jobs can expect from this saga.