UK Government Takes Control of Speciality Steel After Insolvency to Protect 1,450 Jobs

Britain's third-largest steel producer, Speciality Steel UK (SSUK), part of Sanjeev Gupta's Liberty Steel group, has been placed into compulsory liquidation by the High Court following a winding-up order sought by creditors owed hundreds of millions of pounds. The government has taken control of SSUK, which employs about 1,450 people at sites in South Yorkshire, and appointed the Official Receiver along with special managers from advisory firm Teneo to oversee the liquidation process. Sanjeev Gupta and his parent company GFG Alliance opposed the liquidation, arguing that a pre-pack administration supported by investors like BlackRock could have allowed the business to continue operating and protect jobs. GFG's chief transformation officer, Jeffrey Kabel, criticized the decision as irrational, warning it would impose prolonged uncertainty and costs on taxpayers despite available commercial solutions. The liquidation follows the collapse of Greensill, a major creditor to the GFG Group, which is under investigation for suspected fraud linked to its financial dealings with Gupta's companies. The government and courts have prioritized a winding-up order as the preferable approach amid creditor opposition to Gupta's proposals and ongoing concerns about the company's financial stability.