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Steel News June 05, 2019 03:30:32 PM

Liberty Steel Group Among Bidders for Troubled British Steel Assets

Paul Ploumis
ScrapMonster Author
Meantime, British Steel’s former owner Greybull Capital is reportedly preparing to bid for the group’s France and Netherlands operations.
Liberty Steel Group Among Bidders for Troubled British Steel Assets

SEATTLE (Scrap Monster): The Insolvency Service announced that multiple parties have expressed interest in buying all or part of the steelmaking assets of British Steel, which was placed into compulsory liquidation in May, following failure to secure new funding from the government.

Nearly 80 companies have so far contacted the Official Receiver appointed by the bankruptcy court. Out of them, almost 60 potential buyers had been sent non-disclosure agreements, which grant access to the company’s financial data. Several of them have already signed the document, with more expected to follow suit soon.

Media reports indicate that Liberty Steel is one among the potential buyers to approach the Insolvency Services, although the company has so far declined to comment on the matter. As per reports, the Sanjeev Gupta-led Liberty Steel Group plans to convert the BOF mill into an electric arc furnace, which in turn could boost ferrous scrap metal consumption. Unofficial reports claim that Gupta was approached by Ministers, bankers and employee unions as they consider Liberty as the best potential buyer.

Meantime, British Steel’s former owner Greybull Capital is reportedly preparing to bid for the group’s France and Netherlands operations. It plans to integrate the above steelmaking operations with the recently acquired Ascoval mill in northern France. It is learned that trade unions want British Steel’s UK and Europe business to be sold as one.