Liberty Steel: New crisis as supplier applies to wind up works in Stocksbridge and Rotherham over debts
A crisis-hit Liberty Steel company has been hit with a winding up petition threatening hundreds of jobs in Rotherham and Stocksbridge.
Supplier Harsco Metals Group has applied to the High Court of Justice to force Speciality Steel UK into liquidation. If granted, company assets are sold to pay debts, according to Gov.uk.
A hearing is scheduled for 10.30am on Wednesday, November 20, 2024, according to the Gazette, the official public record.
Harsco is a sub-contractor supplying machinery and staff to Liberty.
Earlier this week the steel firm announced plans for a restructure to ‘significantly reduce’ debt at its Speciality Steel UK business. Creditors must approve the plan.
Liberty says it has been hit by a ‘severe market downturn’, high energy costs and debts from the collapse of Greensill Capital. Hundreds of Speciality Steel workers are on furlough.
A Liberty spokesperson said they hoped to resolve the dispute before the hearing.
They said: “Liberty has extended an offer to Harsco to employ its staff and acquire their equipment, aiming for a mutual resolution to preserve jobs.
“We plan to request an adjournment pending the outcome of the announced Restructuring Plan and, in the meantime, remain hopeful for a constructive approach from Harsco.”
It is the second time Liberty has faced a winding up petition. In 2022 HMRC applied to close the company over unpaid debts believed to be £25m.
The threat was lifted a month later after ‘positive discussions’ with the tax authority.