Liberty Steel Group among contenders for troubled British Steel

Insolvency Service announced that several parties have expressed interest in buying all or part of British Steel's steel assets, which were forcibly liquidated in May due to their inability to obtain new funding from the government.

To date, about 80 companies have contacted the official recipient appointed by the bankruptcy court. Of these, nearly 60 potential buyers were sent nondisclosure agreements that provide access to the company's financial data. Some of them have already signed the document and others are expected to follow soon.

Media reports indicate that Liberty Steel is one of the potential buyers to contact the Insolvency Service, although the company has so far declined to comment on the matter. Liberty Steel Group, led by Sanjeev Gupta, is reportedly planning to convert the beneficiation plant to an electric arc furnace, which in turn could increase the consumption of ferrous scrap. Informal reports claim Gupta has been approached by ministers, bankers and workers' unions as they see the Liberty as the best potential buyer.

Meanwhile, former British Steel owner Greybull Capital is reportedly preparing to bid for the group in France and the Netherlands. The plan is to merge the aforementioned steel operations with the newly acquired Ascoval plant in northern France. It was revealed that the unions want British Steel's business in the UK and Europe to be sold as a unit.