Sanjeev Gupta is making a last-ditch effort to rescue Liberty Steel's Speciality Steel UK division ahead of a court hearing on unpaid debts. He aims to establish a pre-pack administration deal that allows the division to eliminate its debts before being acquired by Gupta or affiliated parties. There are concerns among government officials regarding the potential collapse of the steel division, with ongoing fraud investigations into Gupta's businesses. The success of the rescue depends on creditor agreement to write off substantial debts, or SSUK could face compulsory liquidation during the upcoming court proceeding.
Sanjeev Gupta is working on a last-ditch effort to save Liberty Steel's Speciality Steel UK division before a court hearing regarding unpaid debts and a creditor showdown.
Gupta plans an 11th-hour rescue deal, seeking a pre-pack administration that would allow the company to shed its debts before being purchased back by him.
The potential collapse of SSUK is alarming to government officials, who are preparing for situations involving the heavily indebted division while investigations into Gupta's broader empire continue.
The restructuring will require creditor agreements, including write-offs from HMRC and UBS, and the court hearing could lead to compulsory liquidation of SSUK.
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