Liberty Steel Furloughs 660 Workers at Rotherham Plant
The Guardian reported that UK’s third largest steel maker Liberty Steel will pause some production at its UK plants as workers prepare to be furloughed
The Guardian reported that UK’s third largest steel maker Liberty Steel will pause some production at its UK plants as workers prepare to be furloughed for as long as a month while the business tries to conserve cash. As per report, about 180 workers at Liberty’s plant in Rotherham in South Yorkshire, Speciality Steels Steel & Bars business, were put on furlough on Friday evening under the government’s coronavirus support scheme. Some of the site’s 660 staff has been told they may not be able to return to work until 14 April as the company tries to reduce its cash outflows. Liberty’s parent company, GFG Alliance confirmed that “Some parts of the business would be operating intermittently. This can be achieved without compromising the condition of the plant.”
The report added that Liberty’s owner Mr Sanjeev Gupta has told the heads of companies in his steel and industrial empire to keep cash in the business and reduce their call on group resources, as he tries to reach an agreement over debts owed to a collapsed lender. He said GFG hoped for a formal standstill agreement that would put on hold arrangements between the two parties and allow both sides more time to assess and negotiate next steps.
GFG has hired investment bankers from PJT Partners, the restructuring advisers Alvarez & Marsal and the law firm Norton Rose Fulbright to help in negotiations with the administrators. They are also advising on negotiations with an undisclosed number of potential lenders to inject more cash to the business. Mr Gupta also said on Friday that he had received various offers to refinance, but that he needed time to reach a deal with Greensill’s adminstrators.
Mr Gupta’s GFG Alliance, which employs a global workforce of 35,000, was put under severe pressure this week after its key lender, Greensill Capital, collapsed into administration on last Monday.