Indian-origin tycoon in UK loses Liberty Steel plants to govt amid insolvency

The UK's third-largest steelworks has fallen under government control, as a London insolvency court ordered the winding up of Speciality Steel UK (SSUK) – part of the Liberty Steel metals empire of controversial tycoon Sanjeev Gupta according to reports.

The move reportedly affected around 1,450 workers in Rotherham and Sheffield. However, the workers have been assured that they will receive their pay for August as well as unpaid pension contributions.

A high court judge ruled that the Indian-origin owner, Gupta, “had no prospects of repaying debts of several hundred million pounds” and declared insolvency, as per a British newspaper.

The company, which produces steel from scrap metal, will now be taken over by the official receiver, a government-appointed liquidator, along with special managers from consultancy firm Teneo.

According to BBC, the judge found the firm was “hopelessly insolvent” with £6,00,000 in the bank, a monthly wage bill of £3.7m, supported by a parent group that has 15 entities in insolvency proceedings across nine jurisdictions.