Steel, metals and energy grouping GFG Alliance has disclosed the arguments it planned to present in court at a hearing on March 15 as it seeks to overturn the administration of the collapsed UK steel producer Aartee Bright Bar.
The group acquired ABB on Feb. 17 with the intention of incorporating it 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.
According to a statement released March 14, GFG planned to argue that ABB was wrongly put into administration by financial services provider FGI Finance, which was being advised by management firm Alvarez & Marsal.
The group said that it has a business plan that would ensure AAB remains solvent and which is supported by the majority of its creditors.
According to GFG, AAB would also benefit from ongoing financial support from the group in order to cover working capital needs and satisfy existing creditors.
GFG also noted that it has already provided GBP620,000 to fund wages and avoid immediate redundancies.
“The administration process at ABB is unjustified, unnecessary and unsupported by a majority of its creditors and employees whose jobs are on the line,” said chief transformation officer Jeffrey Kabel.
“We urge creditors, employees and stakeholders to get behind our application to save ABB,” he added.
Platts, part of S&P Global Commodity Insights, assessed the weekly UK hot-rolled coil price at GBP 755/mt ($918/mt) DDP West Midlands March 9, down 38.3% from the all-time high of GBP 1,225/mt April 22, 2022.
— Euan Sadden