LIBERTY Steel has today announced a transformative restructuring (“restructuring plan”) for its speciality steel business (“SSUK”) under Part 26A of the Companies Act 2006 – a major step in the company’s recovery and long-term growth strategy.

The proposed restructuring plan will significantly reduce the debts on its balance sheet and enhance its capacity to meet future demand. SSUK has secured support for the plan from its major customers. All creditors will be presented with a detailed proposal and will have the opportunity to vote on the plan.

The proposed plan has no impact on SSUK employees.

Once implemented SSUK will be better positioned to attract new capital and further expand its operations into strategic steel segments with environmentally conscious products.

Jeffrey Kabel, LIBERTY Steel Group Chief Transformation Officer, said:

“After making significant progress to stabilise the business and refocus it on high value specialist products, we’re now addressing the debt position of the company to create a stronger speciality business going forward. Our plan, which is backed by customers, is the best route forward for all stakeholders and we’re confident in winning the support of our creditors for the essential actions required to complete SSUK’s recovery.”

Notes

• · SSUK’s strategic focus on speciality steel grades for the aerospace, defence and energy sectors has helped to mitigate the long-term competitiveness challenges faced by the UK steel industry, particularly those stemming from high energy costs. Despite these efforts the business has been burdened by a highly leveraged balance sheet due to debt from Greensill Capital, which has hindered its viability.
• · The proposed restructuring plan is designed to significantly reduce SSUK’s debt, making it the most effective pathway to recover the business and avoid an insolvency process that would create uncertainty for its creditors and employees.
• · The plan will be presented to creditors for a vote through a court process. The backing from SSUK’s customers ensures that its order book remains stable throughout the restructuring
• period, while the compromise of creditors’ claims will provide the necessary time for the business to improve its cash position and begin repaying its debts.

ENDS

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