Tata Steel UK Sues Liberty Steel over Unpaid Debts
The Telegraph reported that Mr Sanjeev Gupta’s business empire is being sued over a flagship GBP 100 million deal that made him one of Britain’s biggest
The Telegraph reported that Mr Sanjeev Gupta’s business empire is being sued over a flagship GBP 100 million deal that made him one of Britain’s biggest steel magnates. Tata has launched proceedings against Liberty Speciality Steels, Liberty House Group PTE and Speciality Steel UK, all parts of GFG. The Telegraph report cited sources as saying that “A commercial court claim has been filed against Mr Gupta’s GFG Alliance of companies by fellow steel firm Tata. The case relates to alleged missed payments linked to the sale of Tata’s Rotherham-based speciality steel division to Mr Gupta in 2017.”
Tata Steel UK decided to sell the division, which provides materials for aerospace, automotive and oil and gas firms, after a review of its loss-making UK operations. Liberty agreed to buy it in October 2016 and completed the transfer four months later.
Mr Gupta was hailed as a white knight who had rescued more than a thousand jobs when he agreed a deal to buy the speciality steels operation from Tata for GBP 100 million. It is thought that this price included arrangements such as deferred payments and preference shares and also took into account stock held by the business, which reduced the cash amounts due by about a quarter.