Mortgage & Property

New Insurance Professional

Family Office Bulletin

Mortgage Property

Insurance Professional

Family Office

Unions call for govt action on Liberty Steel after Greensill collapse

UK trade unions called on the government to play an “active role” in securing the future of Liberty Steel after the high-profile collapse of the company’s financial backer Greensill Capital.
The steel unions Unite, Community and GMB, met with Liberty owner Sanjeev Gupta to seek assurances “and to request full transparency on the challenges” facing the company.

Describing the meeting as “positive and constructive”, the trio said Gupta intended to secure a refinancing of the debt to provide the business with the necessary liquidity going forward.

“We recognise Mr Gupta’s desire to see Liberty Steel succeed, and recognise also his personal contribution in giving distressed UK steel assets a new lease of life,” they said in a statement via the the National Trade Union Steel Coordinating Committee.

“Liberty Steel is a strategic business for the UK, producing high quality steels for sectors of the economy including defence, energy, aerospace and engineering. Liberty Steel is also a low carbon steelmaker, and the assets must be central to any strategy to decarbonise our steel industry.”

The unions called for a solution “to prevent us having to rely on high carbon imports from countries that don’t play by the same rules”.

Private-equity firm Apollo Global Management is reportedly expected to cherrypick the best of Greensill assets out of administration. Greensill, run by the Australian businessman Lex Greensill, who has close ties to former UK prime minister David Cameron, had last year sought to value itself at $7bn.

Greensill, which allows businesses to borrow money to pay their suppliers, was thrown into crisis after its own financial backers, including Switzerland’s GAM Holding and Credit Suisse, withdrew support amid concerns about the firm’s management and the growing number of loans issued to Gupta’s GFG Alliance.

The crisis at Greensill has also triggered alerts at the Bank of England and the European Central Bank. The BoE’s Prudential Regulation Authority (PRA), which is in charge of monitoring financial stability in the UK, has asked banks to reveal how much of their business is linked to Greensill or GFG Alliance.

While Greensill’s parent company is registered in Bundaberg, the Australian home town of Lex Greensill, most of its business is based in London, where it employs about 600 of its 1,000 global staff.

Credit Suisse has frozen withdrawals for up to £10bn worth of funds in the lender’s accounts as security, due to the bank’s heavy exposure to Gupta’s businesses in the UK, the BBC reported on Monday.

Those businesses include Liberty Steel – the UK’s third largest steelmaker, a large part of which is made up of former Tata Steel assets that were sold to Gupta’s GFG Alliance in 2017.

It was also understood the funding requirements of Gupta’s businesses make up more than 50% of Greensill’s lending volumes, with the BBC citing a source close to the bank as putting GFG’s funding at $70m (£50.6m) per day.

Business secretary Kwasi Kwarteng reportedly held an emergency meeting on Sunday with Liberty Steel’s chief executive John Ferriman to discuss contingency plans in case Greensill went under, though those options were not believed to include nationalisation.

The company employs 3,000 people at 11 locations, with another 2,000 staff at engineering businesses within the Liberty group.

This Week’s Most Read

  • Sir Keir Starmer in pub brawl?

    Predictions of scuffles in pubs came true today, with a landlord being ejected from his own pub by interlopers. Sir Keir Starmer had been listening

  • Class of 2021 retirees at risk of running pension pots dry

    Two thirds (66%) of 2021 retirees risk not having the pension savings to sustain their planned retirement income, according to a new report launched today

  • Sir Keir Starmer, pubs and COVID – taking the piss, not taking a piss..

    We thought you weren’t allowed into pubs these days? Incredible scenes erupted today outside the Raven Pub in Bath, as Sir Keir Starmer was confronted

  • New financial advice service from Vanguard aimed at retirement savers

    Designed for investors saving for retirement, Vanguard Personal Financial Planning launches on the award-winning Vanguard UK Personal Investor platform – vanguardinvestor.co.uk/financial-advice. The service offers personalised

  • The Coming Decade for Climate Solutions

    Randeep Somel, Fund Manager, M&G Climate Solutions Fund, is finding reasons to be cheerful as he uncovers some of the powerful drivers of change which

  • The Superbia Group commits to accountability and living its core values with the formation of a new independent ESG Advisory Board

    The Superbia Group has today signalled its intent to live its values by announcing the appointment of a new independent ESG Advisory Board. The new

  • A Positive Charge

    Ben Constable-Maxwell, Head of Impact Investing at M&G Investments, is one of the driving forces behind the move to integrate ESG, sustainability and impact investing

  • Advice firm highlights how growing reputation boosts referrals amid pandemic

    National financial advice firm, Tenet&You, which opened its new offices at Haddington in December last year, has reported an increase in new business since the

  • A SPAC-tacular surge

    Written by Christopher Butcher, Momentum Global Investment Management During a period of extreme volatility and a global pandemic, the initial public offering (IPO) market had

  • Climate action and quality education are top priorities for sustainable investors

    Tribe Impact Capital aligns all its investments for its clients with the UN SDGs using its unique ImpactDNATM process 69% of all clients consider Climate

IFA Magazine

Keep updated on the most important financial events 

Make sure you are an informed

wealth professional..

Adblock Blocker

We have detected that you are using

adblocking plugin in your browser. 

IFA Magazine