The ex-PM, the businessman, the Chancellor and the failed financier: dodgy goings on over billion pound company crash
The suppliers to Liberty Steel are increasingly concerned over reports that millionaire owner of the company Sanjeev Gupta is planning to buy the plants out of administration when it goes bust.
Meanwhile there are appears to be moves afoot to prevent this cynical piece of business which would see suppliers left high and dry and some staff without full redundancy pay. According to The Sunday Times the accountants Deloitte have been lined up to handle the almost certain administration with a brief to reject any offers from Dubai based Gupta. He is reported to be trying to raise £170 million pounds to pay debts and to stave off collapse of 6% of the nation’s steel capacity at the GFG owned business at sites in Wednesday, Sheffield, Bolton and Wednesbury.
The crisis came to a head last week when the firm who effectively bank rolls the business Greensill Capital run by Lex Greensill went bust – hence Gupta’s scrambling for cash. His request for a Government loan was turned down by the Government as ICSM understands because they don’t trust him due to his opaque business dealings. That’s why they have implied through The Sunday Times he won’t be allowed to own Liberty after it collapses suggesting it could be nationalised in the short term in order to save around 5,000 jobs and a big chunk of the economy in the North of England.
Things have got murkier this week after former ex-Tory PM David Cameron and the current Chancellor Rishi Sunak appeared to be trying to pull strings in Government circles to support Greensill to prevent its collapse. Both have been subject to criticism as the activity of unofficial lobbying by present and former cabinet ministers is strictly off limits.
Ian Carrotte of ICSM said: “The whole thing stinks. A major part of the UK’s core industrial base is in the balance with suppliers and staff wondering if they will get paid. Would the Germans or the Japanese allow such goings on with a vital national resource? I very much doubt it. The whole industry will be outraged if Gupna is allowed to phoenix Liberty.”
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For details for the work of the journalist Harry Mottram visit www.harrymottram.co.uk