California investor in rescue talks with Liberty Steel
The group’s future in on a knife-edge
Steel workers may be thrown a £200 million lifeline from a California-based investment firm.
White Oak Global Advisors is believed to be in talks with Sanjeev Gupta, owner of Liberty Steel, whose empire includes plants in Lanarkshire and Lochaber.
The investor is considering a loan which would require the approval of the Gupta Family Group’s creditors which include Credit Suisse and Tata Steel.
GFG has been scrambling to raise new financing since its major financial backer Greensill Capital collapsed in early March, throwing the future of Liberty Steel and its 3,000 workers into doubt.
The UK Government has rejected Mr Gupta’s request for £170m of support.
Labour has called for it to intervene before the firm collapses, to save thousands of jobs in steel works and the supply chain.