The Gupta business bought the Dalzell works

Britain’s steel industry is one again facing huge uncertainty after the principal financial backer of one of the UK’s largest industrial groups fell into administration.

Specialist bank Greensill Capital is the main lender to businessman Sanjeev Gupta’s GFG empire, whose Liberty Steel acquired the Dalzell and Clydebridge plants in 2016.

Administrators at Grant Thornton have been appointed after the the firm fell into ‘severe financial distress’, and was unable to repay a loan from Credit Suisse.  

The administration puts 5,000 jobs at risk at the group’s Liberty Steel and other firms across the UK. GFG has relied on Greensill for around $5 billion (£3.6 billion) to pay its suppliers.

Greensill’s chairman Maurice Thompson and two other board members also resigned last night.