Liberty Steel: D-Day for South Yorkshire steelworkers as debt-ridden firm faces winding up petition
Steelworkers in South Yorkshire say eight weeks of pension contributions have gone unpaid - as the company faces a winding up petition.
Update: The hearing was adjourned pending the outcome of a vote on a restructuring plan, a Liberty source said.
Previously, a Liberty Steel employee said there had been no communications from the company about payments, affecting hundreds of workers at plants in Rotherham and Stocksbridge, and they had found out through unions.
They added: “Their stance is that Aviva are refusing the payments due to the hearing which I find unbelievable.”
It comes as Speciality Steels UK, a subsidiary of Liberty Steel, faces a winding up hearing at the High Court of Justice today.
Supplier Harsco Metals Group is seeking to force the firm into liquidation so assets can be sold to pay debts.
Harsco is a sub-contractor supplying machinery and staff. Liberty has offered to take on staff and acquire equipment in a bid to halt the winding up process.
A Liberty Steel spokesperson said their pension provider had said it cannot accept payments as they “continue due diligence to support a change in our bank account for payments.”
They added: “This delay has resulted in September and October pension contributions being held until the situation is resolved. Individual and company pension contributions are held securely in a separate account and are available for our pension provider.”
On the winding up, they added: “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.”
Last week Liberty announced plans for a restructure to ‘significantly reduce’ debt at Speciality Steel UK. Creditors must approve the plan.
Liberty has been hit by a ‘severe market downturn’, high UK energy costs and debts from Greensill Capital. Hundreds of Speciality Steel workers are on furlough.