The UK’s Business, Energy, and Industrial Strategy (BEIS) Committee will launch an inquiry into Liberty Steel, its access to state aid, and the role of supply chain financing in its demise, according to the BEIS on April 28.
The inquiry, which will hold its first session in late May, will also assess whether Liberty Steel should be nationalized as a last resort. The BEIS Committee has invited submissions by May 14 to be considered during the inquiry.
Liberty Steel claimants, who have filed winding-up orders to force through the liquidation of three Liberty group companies, were originally due to be heard by a magistrate in early May.
However, the UK government introduced new COVID-19-related rules designed to prevent the rapid winding up of companies who have suffered economic damage by the pandemic.
Time appears to be running out for the successful refinancing of Liberty Steel, given that potential financiers will be concerned about how much the company owes and if any illegality has occurred, noted media reports this week.
In fact, Gupta referred to these petitions as “damaging actions” which would be a material obstacle to securing new financing to save the business.