Over 5,000 steel plant workers’ jobs at RISK after lender collapses

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Steel Plant

Concerns about the future of thousands of steelworkers have emerged following a Liberty Steel’s lender who has “fallen into severe financial distress.”

The Financial Times reported that Greensill Capital failed to repay a $140 million (£101 million) loan to Credit Suisse and fell into administration on Monday.

It is expected to be partly acquired by Apollo Global Management in the coming days, but the deal does not include Greensill.

One of Greensill’s customers is steel tycoon Sanjeev Gupta who owns GFG Alliance as the superior company to Liberty Steel, employing about 5,000 people which make up to a sixth of all steel production across the UK.

A GFG Alliance spokesman said: “Our operations are running as normal and our core businesses continue to benefit from strong market conditions generating robust sales and cash flows.

“Our operational efficiency programme has improved profitability and we are making progress in our discussions with financial institutions that can help diversify our funding. We are keeping our employees up to date and will provide further updates as we deliver our plans.”

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