Liberty Steel has received a £50m cash injection which will safeguard 660 jobs as its plant in Rotherham. The deal is part of a wider restructure of GFG Alliance who own Liberty Steel who had no choice but to seek finding.
This comes as Liberty’s key lender, Greensil Capital collapsed and GFG said this cash injection will enable the plant to reopen this month.
Jeffrey S Stein, chief restructuring officer, said, “I’m pleased to report a significant advance in GFG Alliance’s global restructuring.
“The debt restructuring we have agreed for Liberty Primary Metals Australia gives the business clarity and stability and secures a clear recovery plan for creditors.
“The funding we are injecting to Liberty Steel UK puts it in a strong position for business transformation and debt restructuring.
“The next stage in our global refinancing will be in Europe where a significant number of new lenders are expressing interest in refinancing our steel assets.”
Jeffrey Kabel, chief transformation officer, said, “The injection of £50 million of shareholder funds into Liberty Steel UK is an important step in our restructuring and transformation.
“It will help to create sustainable value, ensure that Liberty has the ability to raise and deploy capital quickly in the UK and enable our businesses to demonstrate their potential and agree long-term debt restructuring.”
Local MP and Labour’s shadow defence secretary John Healey added, “This is a breakthrough after months while Liberty workers have been left in limbo.
“Liberty is at the heart of steelmaking in Rotherham, and we’ve been holding our breath for the working capital to restart production.
“But £50 million won’t be enough for long, so full long-term refinancing for Liberty UK now needs to follow rapidly from the deal for Liberty Australia. Only then will Rotherham breathe more easily.”
Rotherham MP Sarah Champion wrote on Twitter, “Hugely welcomed news. Now the Government needs to play its part and commit to use British steel in its infrastructure projects & addressing the high business rates and energy costs.”