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ArcelorMittal wins UK bid to put Liberty Steel subsidiary into administration over unpaid debt

ArcelorMittal won a. bid on Tuesday to put a subsidiary of Liberty Steel, owned by. commodities magnate Sanjeev Gupta, into administration due to a. 140 million euro ($ 147.4 million) financial obligation which a London court. discovered was not likely to be paid.

ArcelorMittal, the world's second-largest steelmaker, sued. Liberty Steel East Europe (Holdco) Ltd after an arbitration. tribunal ruled in its favour over unpaid debt owed by Liberty. Steel East Europe connecting to the company's acquisition in 2019. of certain assets from ArcelorMittal.

Liberty Steel becomes part of Gupta's household corporation, GFG. Alliance, which has actually been re-financing its companies in steel,. aluminium and energy after its backer, supply chain financing company. Greensill, declared insolvency in March 2021.

GFG Alliance said Tuesday's judgment has no impact on any of. our operations or production. ArcelorMittal did not immediately. respond to an ask for comment.

Liberty Steel East Europe argued it was unneeded to location. the business into administration, a kind of lender protection. which can result in a sale of the business, as it was preparing to. restructure the business.

But Judge Mark Mullen stated after a quick hearing on Tuesday. that Liberty Steel East Europe is unable to pay its financial obligations or be. likely to end up being so.

There is an extremely considerable financial obligation in excess of 140 million. euros which has actually been impressive ... since February 2023, the. judge stated, including that this was proof of cash flow. insolvency.

A GFG Alliance representative said in a declaration that. Tuesday's choice related to a long-running business disagreement. ... which GFG is challenging through legal ways.

The dispute describes claims arising from a sales and. purchase arrangement which is itself being litigated in. confidential arbitration, the spokesperson included.

This legal procedure is at a holding company level and has no. result on any of our operations or production..

(source: Reuters)