Government to take control of Speciality Steels UK to protect jobs

The government has moved to take control of Speciality Steels UK (SSUK), the third-largest steelworks in the country, to safeguard about 1,450–1,500 jobs as the company, part of Liberty Steel and the broader GFG Alliance, faces compulsory liquidation. Special managers from a consulting firm have been appointed to run the business on behalf of the Official Receiver, while a sale is sought to preserve operations and protect workers’ pay and livelihoods.

In London, the High Court heard that SSUK’s creditors were pursuing a winding-up order after the company entered insolvency proceedings. Lawyers for the company had sought more time to pursue a prepack administration that would allow the owner to retain control, but the court was told that two parallel paths would be considered: administration with government involvement or a sale under government supervision following liquidation. A government letter presented in court indicated the Official Receiver was prepared to oversee a sale process should administration become necessary. The judge signaled serious concerns about the consequences of liquidation and described the stakes as high, postponing a final ruling to allow the next...