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HM Revenue and Customs has withdrawn its petition to wind up Liberty Steel after parent company GFG Alliance revealed how further funds have been injected.
Last month we reported there was no current threat to the Lochaber smelter’s operations despite moves by UK tax authorities. The smelter, on the outskirts of Fort William is part of GFG’s Alvance British Aluminium set-up.
Significant progress with creditors has now been flagged by the steel giant, which has interests across the UK and worldwide.
The group put in £50million of shareholder funding to restart the operations at Liberty Steel UK in October and a further ‘significant injection’ of capital has let the company continue to work.
Jeffrey Kabel, chief transformation officer, said: ‘We’re pleased to report good further progress in our negotiations with creditors including UK’s HMRC – we are committed to repaying all creditors and this is an important step in enabling us to restructure and achieve long-term refinancing.
‘Our core international businesses have continued to generate strong returns and achieve record production levels despite the sky-high energy costs facing energy-intensive industries across the U.K and Europe. We will continue to progress our efforts to refocus and refinance our operations for the long-term.’
Liberty Steel has been under financial pressure since the collapse of backer Greensill Capital last year.