UK Johnson vows to save troubled Liberty Steel

Photo: EPA

The UK Prime Minister Boris Johnson vowed to take necessary actions to save cash-strapped Liberty Steel, Reuters reported. The steel producer is struggling to secure fresh financing after the collapse of its main creditor. Liberty Steel employs more than 3,000 people which ups the political and social cost of that decision.

The steelmaker is part of the GFG Alliance conglomerate, that has been rocked by the failure of Greensill, which had extended many billions of dollars in loans. Asked if he would step in to ensure no jobs would be lost at Liberty Steel, Johnson said: “I think that British steel is a great national asset and the fact that we make steel in this country is of strategic long-term importance.”

“I’m very hopeful that we’ll get a solution,” he said. “It would be crazy if we were not to use this post-Brexit moment, to not to use the flexibility we have, to buy British steel. So that’s what we want to do.” Liberty Steel owner Sanjeev Gupta urged creditors not to pull the plug, saying he had garnered huge interest from financiers willing to refinance billions of dollars in debt owed to Greensill. He did not give details on any specific offers. The steelmaker, sought a 170 million pound emergency loan following the collapse of Greensill.

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