UK’s third-largest steelworks collapses into government control
Britain’s third largest steel works were under the control of the government and created an uncertain future for about 1,500 workers in Rotherham and Sheffield.
The bankruptcy courts ordered a compulsory wrapping sought by the creditors.
The company will now be taken into the hands of the official buyer and will be special managers from Teneo, a consulting company assigned to run it on behalf of the liquidation officer.
While the government is searched for a buyer, it agreed to meet the ongoing wages and costs of the facility.
Liberty Steel said the decision to put the company for compulsory liquidation was “irrational”.
Jeffrey Kabel, Chief Transformation Officer, said that the movement “despite the presence of a commercial solution, will bring long -term uncertainty and important costs to the UK taxpayers for settlements and relevant expenses,” he said.
Mr. Gupta lawyers had applied for a four -week postponement to devote time to placeing the company in the “pre -package management”, which allowed a bankrupt company to sell its assets to an bidder.
Investing in troubled companies, the investment giant Blackrock and Fididera asked for financing to get back the business.
His lawyers argued that he could place the company in a “free decline”, and that he could take a significant deterioration, cost and risk for a national important steel company and 1,500 workers.
The judge found that the company was “desperately bankruptcy” in the bank with £ 600,000.
