Liberty Steel boss Sanjeev Gupta says no plants will close ‘under my watch’

Steel firm owed billions to collapsed financial backer Greensill Capital

Mr Gupta said Liberty’s recent efforts to make ‘efficiency gains’ are paying ‘good results’ (Reuters)

The founder of Liberty Steel has insisted no steel plants will close down "under my watch" as he revealed that the company owed billions to collapsed financial firm Greensill Capital.

Kwasi Kwarteng, the business secretary, this week refused to rule out nationalising Liberty Steel amid fears that thousands of jobs could go at its UK plants.

Asked how much money was owed to Greensill, Mr Sanjeev Gupta said that "given the legal disputes we have with them, I can't talk specifics", but added "it is in many billions".

He Told BBC Radio 4's Today programme that Liberty Steel is "currently enjoying one of the best markets in steel and aluminium", and its recent efforts to make "efficiency gains" are paying "good results".

"So, as a result, actually, we have a huge amount of interest from new financiers who are willing to back us," he said.

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He added: "Of course, given the situation, this sort of thing takes time and hence we need to find short-term solutions. But we're not waiting for anybody. We've taken matters into our own hands."

Mr Gupta said he has launched a project connected to "cash measures" plants are taking "to optimise and conserve and be careful".

He acknowledged there are some challenges in the steel sector, such as "high energy prices", but said the business has built its own plants to supply renewable energy to its operations.

Mr Gupta added: "Our overall global operations are profitable, we have refinancing offers, we will refinance and we will support our UK business also.

"None of my steel plants under my watch will be shut down."

He accepted that "the UK has been a tough journey" and "labour of love", but added that he is "committed to my UK steel plants".

"I believe in them, they have a great future. We've saved thousands of jobs here. We've shown that economically those businesses can work," he said.

Questioned about reports that he faces "winding-up petitions" against some of his UK companies and that "you can't afford to pay", he replied: "It is natural to some degree that lenders want to protect their own position.

"But we also have our position. We have committed facilities from Greensill for three years. According to us, these debts are not due."

Mr Gupta said there have been "positive discussions" with the administrator for Greensill.

He added: "It makes no sense for them or any of the creditors to destroy jobs, but, more importantly, to destroy value, because that is the value which will give them the recovery.

"I'm very confident that we will find short-term solutions through our own efforts and will find long-term solutions through refinancing."

The government turned down a request by Liberty's parent company, GFG Alliance, for a £170m bailout.

The company turned to the government for support following the collapse of its main financial backer, Greensill.

The government has also been facing questions over David Cameron's links with Greensill when he was prime minister between 2010-2016 and subsequent lobbying on its behalf after he left office.

The firm has since filed for insolvency after failing to secure support through the government's Covid Corporate Financing Facility, with its collapse threatening thousands of jobs in Liberty Steel.

Additional reporting by PA