Liberty Steel unit faces winding up petition

A winding up petition has been issued against Speciality Steel UK Limited, a division of Sanjeev Gupta's Liberty Steel, according to court records.

The speciality steel unit supplies the aerospace and oil and gas sectors, and operates from sites in Stocksbridge and Rotherham employing about 2,000 people.

It is not clear yet which steel works are affected by the petition.

Mr Gupta's GFG Alliance, the owner of Liberty Steel, was forced into a financial restructuring last year.

This happened because its key lender, Greensill Capital, collapsed.

The petition against Speciality Steel UK Limited was issued by HMRC on Tuesday this week, and is expected to be heard in late March.

A spokesman for GFG Alliance, Liberty Steel's parent company, said: "Our priority has been to protect thousands of jobs in the UK.

"We are committed to repaying all our creditors and continue to work with all stakeholders around the UK to create a sustainable future for our businesses following the collapse of Greensill Capital."

The firm said it was operating against a "very challenging" backdrop, as record high energy prices drove up its overheads.

It added that it was in continuous dialogue with its creditors, including HMRC, to find an "amicable solution" that was in the best interest of all stakeholders.

"Short term actions that risk destabilising these efforts are not in anyone's interest, and undermine creditor recovery at a critical stage in our debt restructuring efforts that seek to secure the future of our businesses," the spokesman added.

A spokesperson for the Department of Business, Energy & Industrial Strategy said: "The government is closely monitoring developments around Liberty Steel and continues to engage closely with the company."

They added: "As always, we stand ready to support their dedicated employees and their families affected by any developments.

"We have provided extensive support to the steel sector as a whole to help with the costs of electricity and are working with them to support their low carbon transition."

HMRC has been approached for comment.