British Government Intervenes in Liberty Steel Liquidation Crisis

The British government has taken control of Liberty Steel after it was placed into compulsory liquidation. The move comes after creditors filed a petition against the firm owned by commodities tycoon Sanjeev Gupta. The government aims to find a buyer while covering ongoing costs.

The British government has stepped in to take control of Liberty Steel, a major part of GFG Alliance, following its entry into compulsory liquidation. This decision is in response to a creditor petition declared by London's High Court, which described the business as "hopelessly insolvent."

With 1,450 jobs hanging in the balance, the government announced it would shoulder the ongoing expenses of the business while seeking a new buyer. A government-appointed liquidator and consultancy management team from Teneo will oversee the company's operations during this interim period.

This marks the second government intervention in the steel sector, following the acquisition of the loss-making British Steel's Scunthorpe plant earlier in the year. Liberty Steel's parent company, GFG Alliance, has been struggling with financial restructuring since the collapse of its financing partner, Greensill.

(With inputs from agencies.)