'Huge relief' as more than 200 Hartlepool steel jobs saved after taxman withdraws winding up court orders
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HMRC issued winding up petitions against four companies that are part of GFG Alliance, whose empire includes Liberty Steel, which employs 250 workers at its pipe mill in Brenda Road, Hartlepool.
The move in February came after the collapse of GFG Alliance’s main lender, Greensill Capital, nearly a year ago.
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Hide AdBut in an update on progress with its restructuring and refinancing, GFG Alliance said the petitions have been withdrawn following “significant progress” with creditors.
GFG Alliance said constructive talks are continuing with creditors and new lenders over longer term refinancing of the business.
Shareholders have also put millions into the business including £50m to restart operations at Liberty Steel UK (LSUK) in October.
Jeffrey Kabel, chief transformation officer, said: “We’re pleased to report good further progress in our negotiations with creditors including UK’s HMRC.
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Hide Ad"We are committed to repaying all creditors and this is an important step in enabling us to restructure and achieve long-term refinancing."
Tees Valley Mayor Ben Houchen said the news will be a huge relief to the the Hartlepool plant’s dedicated workers and their families.
He said: “I’m pleased that Liberty Steel has been able to reach an agreement with HM Revenue & Customs that will see the threatened closure of the Hartlepool Pipe Mill lifted and over 200 jobs saved.
“Liberty’s Hartlepool pipe mills are the biggest in the UK making them a hugely important strategic asset.
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Hide Ad"Since the winding-up petition was issued in February, I’ve been speaking with Government to ensure every option is explored in order to protect the skilled well-paid jobs the plant provides for local workers.”
The GMB union, which represents Liberty Steel workers, said it was a “massive comfort” and will look to hold constructive dialogue with GFG Alliance over the restructure.
National officer Charlotte Childs said: “Thousands of jobs will be saved in the short term, but we are far from out of the woods.”
Sanjeev Gupta, executive chairman of GFG Alliance, said: "As our restructuring and refinancing programmes continue to progress positively we are also making operational improvements to further enhance the performance of our core businesses against a backdrop of robust demand for our products.”