UK’s third-largest steelworks collapses into government control
Published: 23 August 2025, 8:15:48

Court hearings to decide on the steel firm’s future had previously been adjourned several times
The UK’s third-largest steelworks has been placed under government control, creating an uncertain future for nearly 1,500 workers in Rotherham and Sheffield.
Insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by Speciality Steels UK (SSUK) – part of the Liberty Steel metals empire of controversial tycoon Sanjeev Gupta.
The company, which uses scrap metal to manufacture steel, will now be placed in the hands of the official receiver – a government appointed liquidator – and special managers from consultancy firm Teneo.
The government has agreed to cover the ongoing wages and costs of the plant while a buyer is sought.
Following the High Court decision on Thursday, Liberty Steel’s chief transformation officer Jeffrey Kabel told the BBC he was “really disappointed” as he thought they had “presented a very good case”.
“We are by far the best company to run this business. We’ve run it for 10 years. Put a lot of blood, sweat and a huge amount of money into it,” he said.
Lawyers for Mr Gupta had applied for a four-week adjournment for time to place the company in a “pre-pack administration”, which allows an insolvent company to sell its assets to a bidder.
He wanted funding from investment giant BlackRock and Fidera, which invests in distressed companies, to buy back the business.
Winding up the company, his lawyers argued, could place the business in “free fall” and incur significant disruption, cost and risk to a nationally important steel company and its staff.
The judge found the firm was “hopelessly insolvent” with £600,000 in the bank, a monthly wage bill of £3.7m, supported by a parent group that has 15 entities in insolvency proceedings across nine jurisdictions.
Lawyer for the creditors, Ryan Perkins, argued UK steel-making would be better served if the company’s assets were sold off with assistance from independent special managers acting on behalf of the government after it is wound up, rather than allowing administrators appointed by Mr Gupta to conduct the process.
Liberty Steel Group’s finances were upended when its main lender, Greensill Capital, collapsed owing billions to investors including UBS. Those investors are part of the creditor group that applied for the winding up petition.
Mr Gupta’s plan to place SSUK in administration then immediately buy it out again would have allowed the company to largely shed those debts.
Mr Kabel said the company was still hopeful it could buy SSUK back due to Blackrock and others “supporting us”.
In court, creditors highlighted how SSUK had not published financial statements since 2019 and its direct parent company, based in Singapore, was itself subject to insolvency proceedings.