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Steel & Metal
- United Kingdom -

Liberty Steel Weighs Pre-Pack Sale of UK Specialty Business; BlackRock Financing Eyed

Sanjeev Gupta is seeking financing from BlackRock to support a pre-packaged insolvency process for Liberty Steel’s Speciality Steel unit in the UK, according to reports today. Under the plan, administrators would be appointed and the business subsequently sold back to a Gupta-linked entity using new funding. Creditors, including UBS (which absorbed exposure from Credit Suisse) and parties linked to Greensill Capital, are contesting aspects of the proposal, with claims reportedly exceeding £235 million. Insolvency specialist Begbies Traynor has been discussed as a potential administrator, though no final appointment was announced. A separate High Court hearing on a winding-up petition supported by Greensill’s administrators is pending, adding legal complexity. Liberty Steel said discussions continue to finalize options that protect creditors and employees; unions have called for a stable solution to safeguard approximately 1,500 jobs. Gupta-related entities remain under investigation by the UK’s Serious Fraud Office. Today’s developments highlight ongoing restructuring efforts within the UK steel sector following earlier failed debt workouts. Next procedural steps will hinge on court outcomes and agreement among key lenders and stakeholders on the terms of any pre-pack transaction.

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