14 March 2023 , 11:59
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Hundreds of steel jobs could be saved if a court backs a rescue plan tomorrow, an industry boss has claimed.
Some 250 posts at Aartee Bright Bar were thrown into jeopardy when it was plunged into administration last month.
But Liberty Steel tycoon Sanjeev Gupta’s GFG Alliance stepped in to take over the business - and will tomorrow ask the High Court in Manchester to overturn the administration process.
GFG believes it can hand the firm a lifeline, claiming it “is a solvent company with enough cash and facilities to satisfy existing creditors”.
GFG said it had put forward an “optimum business plan for Aartee Bright Bar creditors and employees”.
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Its legal application “seeks to immediately end the administration of ABB”, warning: “The administration process will inevitably lead to plant closure and redundancies.
Liberty Steel boss Sanjeev Gupta (PA)“GFG’s legal representatives will argue that its business case for ABB will provide a far superior outcome for creditors, employees and all other stakeholders compared with a damaging insolvency process.”
ABB has its headquarters in Willenhall, West Mids, and a site in Dudley, as well as warehouses in Rugby, Warks; Bolton, Lancs; and Newport, South Wales.
Unions fear job cuts unless the plan is backed.
The UK steel industry is under increasing pressureGFG claims its proposal will “ensure no redundancies and integrate the business with Liberty Steel’s engineering bar division”.
The company’s chief transformation officer Jeff Kabel said: “Our plan for ABB would see jobs protected and provide superior outcomes for its creditors immediately.
“The administration process at ABB is unjustified, unnecessary and unsupported by a majority of its creditors and employees whose jobs are on the line.
Liberty Steel's chief transformation officer, Jeff Kabel (Courtesy of Liberty Steel)“We urge creditors, employees and stakeholders to get behind our application to save ABB.”
Community steelworkers’ union general secretary Roy Rickhuss said: “The plan presented today by GFG for ABB could help protect vital jobs and the future of the business.
“We are hopeful the court will listen carefully to this proposal and consider all alternatives that avoid redundancies and protect the loyal workforce.”
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The move would be a welcome boost for the struggling British steel industry, which is worth £2.4billion annually to the UK economy.
Community steelworkers' union general secretary Roy Rickhuss (Daily Mirror)It employs 34,500 people directly in the UK and supports a further 43,000 in supply chains.
But firms are cutting jobs, with British Steel planning to axe 260 posts and 440 roles under threat at Liberty Steel - even as it tries to save jobs at Aartee Bright Bar.
The Mirror has been campaigning to Save Our Steel since 2015.
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