One of the UK’s largest steel companies said it had ‘adequate funding’ for its current needs after concerns were raised over around 5,000 jobs when one of its major lenders shut down. filed an administration request.
Bosses of GFG Alliance, which owns Liberty Steel, met with unions on Tuesday, saying they were looking for refinancing options after the collapse of Greensill Capital.
“Although Greensill’s difficulties have created a difficult situation, we have adequate funding for our current needs,” GFG said in a statement.
He added: “Discussions to secure long-term alternative financing are progressing well but will take some time to organize. During this time, we have asked all of our businesses to manage their cash flow carefully. “
Sanjeev had a productive meeting with the unions today to discuss the plan to make parts of UK companies facing weak market conditions more financially viable and to address the disruption caused by the situation in Greensill.
Representatives of the union’s National Steel Coordinating Committee called the meeting with GFG boss Sanjeev Gupta “positive and binding.”
“It is clear that Mr. Gupta intends to obtain debt refinancing to provide the company with the necessary liquidity in the future,” they said.
“We recognize Mr Gupta’s desire to see Liberty Steel succeed, and also recognize his personal contribution in giving new life to ailing UK steel assets.”
Mr Gupta has often been called the ‘savior of steel’, but his five billion dollars (£ 3.6 billion) in loans from Greensill has raised concerns about the future of his empire, including Liberty Steel, which employs 3,000 people.
Greensill filed for administration on Monday after finding he was unable to meet his debts.
“Sanjeev had a productive meeting with the unions today to discuss the plan to make parts of UK companies facing weak market conditions more financially viable and to address the disruption caused by the situation in Greensill,” said GFG.
Mr Gupta’s business has faced a 60% drop in demand for some of its products due to the impact of Covid-19 on the aircraft manufacturing industry.
Earlier today, Downing Street said reports that up to 5,000 jobs could be at risk was “of great concern to company employees.”
The Prime Minister’s official spokesperson said: “We continue to follow developments closely.”
The National Union called on the government to ensure that jobs and the company are not lost.
He said: “Given the strategic importance of Liberty’s steel operations and their fundamental importance to achieving the UK’s climate goals, we believe the government must play an active role in facilitating a comprehensive solution that preserves the future and protect jobs. “