Speciality Steel UK: Receiver appointed over unpaid debts at crisis-hit Sheffield steel firm
A receiver has been appointed in connection with a debt-ridden South Yorkshire steel company.
Together Finance is set to take possession of land to the east of Speciality Steel’s works in Thrybergh, Rotherham, which was put up as security against a loan.
Speciality Steel UK - part of Liberty Steel - took out three loans with Together Finance in 2018 valued at £10m. They are all outstanding, according to Companies House.
FRP Advisory, of Preston, was appointed as receiver by the finance company on June 2.
The move comes as Speciality Steel - which employs 1,500 at works in Rotherham and Stocksbridge - fights for survival.
It owes more than £600m following the collapse of lender Greensill and a downturn in demand. Many workers have been on furlough for months due to a lack of orders.
A Liberty Steel spokesperson said the receivership did not affect operations.
“This is a fixed charge receivership related to surplus land that is not used for SSUK business operations.
“The step does not affect current SSUK business operations and was carried out by Together Finance who hold a charge over the surplus land. The land is suitable for residential development, subject to planning permission.”
Last month, a court hearing to decide a winding up order against Speciality Steel UK was adjourned until mid-July to “finalise options,” including a potential sale of the business.
The action was brought by Harsco Metals Group over unpaid debts.
Speciality Steel last filed accounts in 2019.
In 2022 its auditor, King and King based in London, resigned due to a lack of information about an investigation by the Serious Fraud Office and the company’s ability to fund operations for at least 12 months.