ICSM manufacturing insolvency news: Government takes control of third largest steelworks in England as Sanjeev Gupta’s business was ‘hopelessly insolvent’
By Harry Mottram: A major chunk of Britain’s steel industry is now under the control of the Government – nationalisation in all but name. A judge has ruled that Speciality Steels UK (SSUK) – part of the Liberty Steel metals empire of Sanjeev Gupta was hopelessly insolvent and to protect it from collapse has passed the outfit into the hands of the official receiver - a government appointed liquidator - and special managers from consultancy firm Teneo. The government has agreed to cover the ongoing wages and costs of the plant while a buyer is sought.
With the USA imposing 25% tariffs on UK steel putting pressure on the industry and with Gupta’s empire having serious financial issues on a number of fronts and a desire to retain steel making in the UK there was a case to keep the business going. The BBC reported that in the case brought before the court over a winding up order the judge found the firm was "hopelessly insolvent" with £600,000 in the bank, a monthly wage bill of £3.7m, supported by a parent group that has 15 entities in insolvency proceedings across nine jurisdictions.
Ian Carrotte of ICSM said that with Britain now planning to rearm to offset the threat of Russian aggression steel making needed to be retained in this country along with the thousands of jobs and the income it creates in Rotherham and Sheffield. He said with such a hopeless set of finances suppliers will breath a sigh of relief that they will still be paid since with Government backing the firm will honour payments. The issue now he said is who would buy the enterprise. Gupta had tried to get funding for a buy back but that has failed – hence the Government stepping in.
Tired of waiting to be paid by your customers - use ICSM Debt Collection Service - and get paid fast
Struggling with Late Payers or Bad Debt?
ICSM offers expert credit management and debt recovery solutions that help businesses like yours get paid fast.
• Free online suite of legal letters and final demands
• Specialist team ready to recover unpaid invoices
• Polite, professional mediation to preserve customer relationships
• Hardline legal options when needed
• Late payment interest, compensation, and fees recovered under the Late Payment of Commercial Debts Regulations 2002
Why Act Early?
Passing overdue accounts to ICSM early increases your chances of full recovery. Our multi-channel approach—calls, emails, and letters—ensures the right message reaches the right people at the right time.
We understand that non-payment often stems from miscommunication. That’s why we focus on resolving issues while protecting your reputation.
• Email: yateadmin@icsmcredit.com
• Call: 01454 322234
• www.icsmcredit.com
• Express Park, Bridgwater, Somerset, UK