The UK government has lined up special managers to take over Liberty Steel’s South Yorkshire operations if they are forced into administration, the high court in London has heard. The move underscores Whitehall’s readiness to safeguard the future of Speciality Steel UK (SSUK), which employs around 1,450 people at plants in Rotherham and Stocksbridge.
SSUK’s creditors are pursuing a winding-up order, while the company has requested more time to arrange a “pre-pack” administration deal that would allow owner Sanjeev Gupta to retain control. The Department for Business and Trade confirmed the official receiver is prepared to oversee a sales process if administration is triggered.
Judge Sally Barber initially suggested granting two weeks’ breathing space but later referred the case to another court after learning that the government had already filed an application for a special manager. A decision is expected this week on whether the company will move into a government-handled administration or continue under Gupta’s control.
The crisis comes amid long-running struggles for Gupta’s GFG Alliance following the 2021 collapse of its main financier, Greensill Capital, which left creditors—including Citibank, owed £233m—seeking repayment. SSUK has also been hit by wider industry pressures, including the pandemic and cheap Chinese steel, recording losses of £340m over four years and leaving just £650,000 in the bank.
While Gupta has invested nearly £200m into the business and is seeking new funding from BlackRock to back a rescue plan, creditors argue that only a government-led liquidation would protect value. Workers, meanwhile, face further uncertainty as operations at key plants have been largely halted for a year, despite wages continuing to be paid.
A government spokesperson said it was “closely monitoring developments” and stood ready to act if compulsory liquidation was ordered.
