finance

Liberty Steel brings in restructuring experts as it battles Greensill fall-out



Liberty Steel has appointed four new directors and is considering the sale of parts of the company as it tries to deal with the collapse of its main lender Greensill Capital.

The company – which has several steel processing plants Scotland – stated that the new personnel will “lead and accelerate the restructuring and refinancing of Liberty in order to protect and maximise creditor and stakeholder value”.

Liberty Steel said it had set up a restructuring and transformation committee, which would be given powers to restructure the company’s operations to focus on its more profitable sites. It would either “fix or sell underperforming units”.

It has also brought on board advisers PJT, Alvarez & Marsal and Norton Rose Fulbright to negotiate with Greensill’s administrators and other affected parties.

Among the appointments are American executive Jeffrey Stein, who specialises in turning round struggling companies, as chief restructuring officer, alongside a new chief transformation officer.

Both jobs are temporary and the new directors will not have a stake in the business, instead receiving fees for their work.

The group has also announced the appointment of a chief governance officer and a new chief financial officer.

Liberty Steel’s future is the subject of speculation after specialist bank Greensill Capital went into administration, with questions being asked about the role former prime minister David Cameron played in seeking UK Government support.

GFG Alliance Group owner Sanjeev Gupta’s business empire employs around 5,000 people in the UK, a majority of whom work for Liberty Steel across its 11 sites throughout England, Scotland and Wales.

Unions and Labour politicians have called on the UK Government to save the firm, but ministers are concerned that they cannot get assurances any support would stay in the UK.

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