Liberty Steel has announced a restructuring plan for its specialty steel business, SSUK, as part of its recovery and growth strategy. The plan aims to significantly reduce SSUK’s debt and strengthen its ability to meet future demand. SSUK has secured support from its major customers, and creditors will be presented with a detailed proposal and given the opportunity to vote.
The restructuring will not affect SSUK employees. Once implemented, SSUK will be better positioned to attract new capital and expand into environmentally conscious steel segments.
Focusing on specialty steel grades for aerospace, defense, and energy sectors, SSUK has worked to overcome the UK steel industry’s challenges, particularly high energy costs. However, its debt from Greensill Capital has hindered its financial stability. The restructuring plan seeks to reduce this burden, avoiding insolvency and creating a clear path to recovery.
The plan will be voted on by creditors through a court process, with customer backing ensuring a stable order book during the restructuring. The proposed debt reduction will give SSUK the time needed to improve its cash position and begin repaying debts.
