UK Government in Crisis Talks with Liberty Steel
This is Money reported that UK’s Business Secretary Mr Kwasi Kwarteng has held fresh crisis talks with Liberty Steel as worries mount over whether it will
This is Money reported that UK’s Business Secretary Mr Kwasi Kwarteng has held fresh crisis talks with Liberty Steel as worries mount over whether it will secure new financing. The report quoted a Whitehall source as saying that “Government has no idea when new funding for Liberty will be secured and that ministers have not given Gupta a hard deadline. Liberty says it is still trying to arrange financing. But it doesn't feel imminent. It's quite a complex situation so these things aren't quick. We've been hearing it will be soon for the past two months. We're still hoping for the best, but planning for the worst.”
The company has been on the brink since Greensill Capital, the biggest lender to Liberty owner Sanjeev Gupta, collapsed in early March. This has left the fate of 5,000 jobs in the lurch including 3,000 at Liberty, the UK's third largest steel group. He is in talks to raise cash from new lenders to prop up GFG since Greensill went bust. But worries about its opaque structure are reportedly putting off lenders.
The outcome for other parts of his empire has been mixed. In Australia, GFG is in talks with Bain and Oaktree to plug some of its funding shortfall. In France, three aluminium plants went into bankruptcy last week and are being propped up by the French state.