Liberty Steel Served with Winding-Up Notice by HRMC

SEATTLE (Scrap Monster):  A winding-up petition has been filed against the specialty steels division of Liberty Steel by Her Majesty’s Revenue & Customs (HMRC).

The petition filed by the taxman is feared to lead the division into insolvency, thus casting further doubts on the future of the business. Incidentally, the Liberty Steel division employs close to 2,000 people at its Rotherham and Stocksbridge plants. The Court is expected to hear the petition by late-March this year.

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The company has so far been protected by means of a moratorium against such actions granted to it by its creditors, which originally was aimed at providing the company more breathing time during the difficult pandemic situation. The filing of the petition follows the expiry of the moratorium late last year. Although the exact sum of money owed by Liberty Steel to HMRC remains undisclosed, estimates suggest it to be in the range of tens of millions of pounds.

Meantime, company spokesperson said that it is committed to repay all its creditors and work with all stakeholders to create a sustainable future for the business. The priority has been and will be to protect thousands of jobs in the UK. Liberty Steel is in continuous dialogue with all creditors including HMRC, he added.