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Lenders come after Liberty Steel

Winding up petitions against the speciality steels division of Liberty Steel could still go ahead.

The company, part of Sanjeev Gupta’s GFG Alliance, employs hundreds of staff in South Yorkshire, including in Rotherham. GFG underwent a restructuring and transformation drive following the collapse of its main lender Greensill Capital.

HM Revenue & Customs (HMRC) issued a petition to have the speciality steel company wound up but following positive discussions, the petitions were withdrawn.

However, a judge has recently ruled that financial firms Citibank and Credit Suisse can continue with their own winding up petition, issued to the courts by those seeking to recover money that they are owed. The courts do not look on it as a debt recovery process, rather that the company can’t pay its debts and should be wound up so that liquidation can be used to collect the company’s assets.

Statutory demands and winding-up petitions were restricted…

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