British Financial Times reported that UK’s Her Majesty's Revenue & Customs is trying to force Speciality Steel UK Limited, which employs about 2,000 people in England, into insolvency, after a winding-up petition was filed earlier this week. The Her Majesty's Revenue & Customs decision to file a winding-up petition follows the expiry late last year of a moratorium, introduced by the British government to give company bosses greater protection during the pandemic, against such actions by company creditors. Her Majesty's Revenue & Customs spokesperson said "We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances." The petition is expected to be heard late next month. Media report said “It is unclear that how much Speciality Steel UK Limited business, which operates plants in Rotherham and Stocksbridge, owes Her Majesty's Revenue & Customs. The Financial Times reported three other firms, Liberty Pipes, Liberty Performance Steels and Liberty Merchant Bar, also had petitions against them. Four companies owe HM Revenue & Customs GBP 26.4 million.” GFG Alliance said it is operating against a very challenging backdrop, as record high energy prices drove up its overheads, and is in continuous dialogue with its creditors, including HMRC, to find an amicable solution that is 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 Community, Unite and GMB unions, who represent the UK’s steel industry, said "This action by HMRC threatens thousands of jobs and is a devastating blow to our members and their families. Liberty Steel is a strategically important business, crucial to delivering net zero, and under no circumstances can our plants be allowed to close. GFG and HMRC should get back round the table and hammer out a deal that provides space for the company to refinance. "The best route to protect jobs and repay HMRC and other creditors would be to enable the business to continue to trade.” Meanwhile, UK’s Financial Reporting Council announced it is investigating HW Fisher, the auditor to Liberty Commodities which is another of Mr Gupta's businesses. The accounting watchdog said the probe concerned HW Fisher's audit of Liberty Commodities' financial statements for the year to 31 March 2020. The agency said it is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the Gupta Family Group Alliance. Mr Saneev Gupta's GFG Alliance was forced into a financial restructuring in 2021 because its key lender Greensill Capital collapsed. Since then it has been racing to shore up its finances under growing pressure from creditors and the tax authorities.
British Financial Times reported that UK’s Her Majesty's Revenue & Customs is trying to force Speciality Steel UK Limited, which employs about 2,000 people in England, into insolvency, after a winding-up petition was filed earlier this week. The Her Majesty's Revenue & Customs decision to file a winding-up petition follows the expiry late last year of a moratorium, introduced by the British government to give company bosses greater protection during the pandemic, against such actions by company creditors. Her Majesty's Revenue & Customs spokesperson said "We take a supportive approach to dealing with customers who have tax debts, working with them to find the best possible solution based on their financial circumstances." The petition is expected to be heard late next month. Media report said “It is unclear that how much Speciality Steel UK Limited business, which operates plants in Rotherham and Stocksbridge, owes Her Majesty's Revenue & Customs. The Financial Times reported three other firms, Liberty Pipes, Liberty Performance Steels and Liberty Merchant Bar, also had petitions against them. Four companies owe HM Revenue & Customs GBP 26.4 million.” GFG Alliance said it is operating against a very challenging backdrop, as record high energy prices drove up its overheads, and is in continuous dialogue with its creditors, including HMRC, to find an amicable solution that is 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 Community, Unite and GMB unions, who represent the UK’s steel industry, said "This action by HMRC threatens thousands of jobs and is a devastating blow to our members and their families. Liberty Steel is a strategically important business, crucial to delivering net zero, and under no circumstances can our plants be allowed to close. GFG and HMRC should get back round the table and hammer out a deal that provides space for the company to refinance. "The best route to protect jobs and repay HMRC and other creditors would be to enable the business to continue to trade.” Meanwhile, UK’s Financial Reporting Council announced it is investigating HW Fisher, the auditor to Liberty Commodities which is another of Mr Gupta's businesses. The accounting watchdog said the probe concerned HW Fisher's audit of Liberty Commodities' financial statements for the year to 31 March 2020. The agency said it is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct of the business of companies within the Gupta Family Group Alliance. Mr Saneev Gupta's GFG Alliance was forced into a financial restructuring in 2021 because its key lender Greensill Capital collapsed. Since then it has been racing to shore up its finances under growing pressure from creditors and the tax authorities.
