Liberty Steel makes last attempt to save assets in the UK

Liberty Steel is making a last-ditch effort to save its plants in and around Rotherham and Sheffield, the BBC reports.

A court on May 21 could force Liberty Specialty Steels UK to close due to debt. This would put 1,450 jobs at risk if the company cannot buy time by postponing the case. Creditors, including Harsco Metals, have filed a petition for the company’s compulsory liquidation so that Liberty’s assets can be sold to pay off the debt.

Liberty Steel told the BBC that negotiations with creditors are ongoing and the company is still committed to doing everything possible to support the specialty steel business.

Government sources, in turn, noted that the authorities are not ready to intervene to save Liberty or any of its subsidiaries to pay off debts. However, the government may consider such a possibility if the courts force the business to declare bankruptcy.

Roy Rickhass, general secretary of the Community steelworkers’ union, said that its members have experienced too much turbulence and uncertainty in recent years at the company “as a result of the erratic and irresponsible way the company has been run.” According to him, failed restructuring plans and broken promises have become a familiar, demoralizing pattern.

According to Rickhass, a new responsible owner is needed to secure the future.

A spokesperson for the Ministry of Business and Trade said the government continues to closely monitor developments around Liberty Steel, including any public hearings, which are of course the company’s business. According to him, Liberty ultimately has to make commercial decisions about the future of its companies. The agency hopes it will succeed in its plans to continue on a sustainable basis.

Last November, Liberty Steel sought court approval to restructure its UK specialty steel division to reduce liabilities. However, last week it was announced that the company was unable to reach an agreement with its creditors.

The European trade union organization IndustriAll Europe said that the bankruptcy of the Luxembourg-based Liberty Steel Liège was a sad but expected outcome of a long period of irresponsible corporate governance and political inaction by Liberty Steel.