Speciality Steels UK (SSUK), part of Sanjeev Gupta's metals empire, has been placed into compulsory liquidation after creditors sought a winding-up order. Insolvency courts granted the order because creditors are owed hundreds of millions of pounds. The company will be placed in the hands of the Official Receiver and managed by special managers from consultancy firm Teneo on behalf of the liquidator. The government has agreed to cover ongoing wages and costs at the plant while a buyer is sought. Around 1,500 workers in Rotherham and Sheffield face an uncertain future. Liberty Steel called the decision "irrational" and said the action could impose prolonged uncertainty and significant costs on taxpayers despite a commercial solution being available.
The UK's third-largest steelworks has been placed under government control, creating an uncertain future for nearly 1,500 workers in Rotherham and Sheffield. Insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK (SSUK) part of the metals empire of controversial tycoon Sanjeev Gupta. The company will now be placed in the hands of the Official Receiver and special managers from consultancy firm Teneo, which has been appointed to run it on behalf of the liquidator.
The government has agreed to cover the ongoing wages and costs of the plant while a buyer for is sought. Liberty Steel said the decision to put the firm into compulsory liquidation was "irrational". Chief transformation officer Jeffrey Kabel said the move would "impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution".
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