Steel, metals and energy grouping GFG Alliance will go to court on Feb. 24 seeking to overturn the administration process of Aartee Bright Bar, it said Feb. 23.
GFG Alliance acquired the collapsed UK steel company on Feb. 17 with the intention of incorporating ABB into its Liberty Steel Group subsidiary.
The acquisition followed the appointment of administrators over ABB on Feb. 6, with the company citing challenging economic conditions and high metal costs for its collapse.
On Feb. 17, GFG said it would seek to restart operations across ABB’s two UK productions sites in the West Midlands, and three distribution and sales offices in Warwickshire, Lancashire and South Wales.
“GFG believes the administration is unjustified and unnecessary and risks an ongoing insolvency process that will lead to significant job losses and a fire sale of the business’ assets,” said Liberty Steel chief transformation officer Jeffrey Kabel.
“The alternative is clear: maintain the business as a going concern and integrate it into Liberty Steel’s UK operations, securing workers’ livelihoods and protecting a vital part of the UK’s steel supply chain and distribution network,” he added.
GFG Alliance also described the administration of Aartee Bright Bar Property as “grossly inappropriate” and advised that GFG is reserving its rights to commence ancillary proceedings to prevent a sale of the properties and for it to exit administration expediently.
Platts, part of S&P Global Commodity Insights, assessed the weekly UK hot-rolled coil price at GBP 730/mt ($871/mt) DDP West Midlands Feb. 16 down 40.4% from the all-time high of GBP 1,225/mt April 22, 2022.
— Euan Sadden