There are fears for steel jobs in Motherwell after Liberty Steel’s lender filed for administration.
Lawyers for Greensill Capital appeared in court on Monday to appoint administrators from Grant Thornton.
The lender has “fallen into severe financial distress,” according to its lawyers and had no way of repaying a 140 US dollar (£101 million) loan to Credit Suisse.
Greensill lends money to businesses so they can pay their suppliers and one of its major customers is Sanjeev Gupta’s GFG Alliance, which owns Liberty Steel ,with one of its steelworks being Dalzell in Motherwell.
The Community union said: “Sanjeev Gupta needs to tell us exactly what the administration means for Liberty’s UK businesses and how he plans to protect jobs. The future of Liberty’s strategic steel assets must be secured and we are ready to work with all stakeholders to find a solution.”
A spokesperson for Grant Thornton said its insolvency practitioners Chris Laverty, Trevor O’Sullivan and Will Stagg had been appointed as joint administrators of Greensill Capital and Greensill Capital Management Company.
A spokesperson for GFG Alliance said: “Our operations are running as normal and our core businesses continue to benefit from strong market conditions generating robust sales and cash flows.
“Our operational efficiency programme has improved profitability and we are making progress in our discussions with financial institutions that can help diversify our funding. We are keeping our employees up to date and will provide further updates as we deliver our plans.”
Motherwell and Wishaw MP Marion Fellows, pictured, insisted that steel jobs must be protected.
She added: “It is concerning that Greensill has filed for administration given the lengths the Scottish Government took to secure a future for Dalzell in Motherwell.
“Steel is an essential industry and the future of the sector and steel jobs must be protected.
“I understand that discussions between Liberty Steel’s Sanjeev Gupta and trade unions have been constructive and steps are being taken to ensure liquidity for Liberty Steel so that its sites can continue to operate.
“Assurances have been provided that Liberty has adequate funding for its current needs.
“This is undoubtedly a challenge, however Liberty Steel is in a strong position and appear confident they will be able to overcome any difficulties.”
