© Provided by City AM Steel tycoon Sanjeev Gupta today told workers' unions that his firm GFG Alliance had adequate funding despite the collapse of major backer Greensill Capital yesterday.
The billionaire said that the firm, which owns Liberty Steel, was in the processing of securing alternative funding.
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"We have adequate funding for our current needs while we bridge the gap to refinancing the business. Securing alternative long-term funding is progressing well but will take some time to organize", a source told Reuters.
In a statement after the meeting, a spokesperson for GFG added: "Sanjeev had a productive meeting with the unions today to discuss the plan to make the parts of the UK businesses facing weak market conditions more financially sustainable and address the disruption caused by the situation at Greensill.
"Liberty Steel Group has provided significant support to the UK speciality steel business which has seen the demand for some products fall by 60 per cent following the downturn in the aerospace sector due to Covid-19.
"As part of the prudent steps we are taking to manage cash, we are discussing new opportunities with customers and suppliers to improve cash flow and looking to secure additional working capital facilities to support the business.
"We also continue to use the furlough scheme to support employees affected by the weakness in the aerospace market. We will continue to work closely with the unions and our employees to identify the most effective ways of supporting the business and preserving jobs."
In a joint statement, unions Community, GMB, and Unite, said: "The meeting was positive and constructive, and it is clear Mr Gupta intends to secure a refinancing of the debt to provide the business with the necessary liquidity going forward.
"We recognise Mr Gupta's desire to see Liberty Steel succeed, and recognise also his personal contribution in giving distressed UK steel assets a new lease of life.
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"The unions have told Mr Gupta our priority is to secure the future of all Liberty Steel's UK assets, and to this end all options should be considered."
Greensill's collapse has left many fearing that thousands of jobs at Liberty Steel's assets in the UK could be at risk.
Around 3,000 people are directly employed at nine steelworks across the country, and a further 2,000 work for engineering firms whose work depends on the plants.
In addition to meeting with unions, Gupta has in recent days been meeting with government ministers such as business secretary Kwasi Kwarteng.
A number of MPs have urged the government to do "whatever it takes" to protect jobs.
Miriam Cates, MP for Penistone and Stocksbridge, where one of Liberty's steelworks is located, told City A.M.:
"The jobs provided by Speciality Steels are highly valuable to our community and I understand that this is an uncertain time for employees and their families, many of whom live in the Penistone and Stocksbridge constituency.
"This morning I spoke to the local Community Union representative to hear employees' concerns, and I continue to offer them my full support.
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"I am continuing to advocate that, regardless of the challenges Liberty is facing, Stocksbridge Speciality Steels is an asset of national importance and it has unique capabilities to produce the materials we need now and in the future.
"I firmly believe that steel is not just an important part of the history of Stocksbridge, it should also be a vital part of our future and I will continue to work closely with management and the Government to do whatever is possible to help secure a strong and profitable future for Stocksbridge Speciality Steels."
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