Gupta Steel Firm Facing Insolvency as Restructuring Plan Pulled

A UK division of Sanjeev Gupta’s steel empire faces insolvency, after its parent withdrew a restructuring plan that was fiercely rejected by creditors.

Speciality Steel UK Ltd., an operator of plants in northern England, was unable to get creditors to agree to a plan to reduce its liabilities within an acceptable time frame ahead of a London court hearing on May 15, GFG Alliance said in a statement. The bulk of the business’s creditors relate to funding provided to Gupta’s GFG Alliance by Greensill Capital before it collapsed in 2021.

Greensill creditors and GFG Alliance reached a tentative agreement ...