Liberty Steel has secured a £50m cash injection which would allow its Rotherham plant to reopen this month after it has been closed since spring.
Liberty’s owner, GFG Alliance, has agreed debt restructuring with Credit Suisse. It was forced to seek funding after the collapse of its key lender, Greensill Capital.
The cash injection will save 660 jobs at the Rotherham plant.
A request to the government for help was rejected by business secretary Kwasi Kwarteng in April.
In April, GFG approached the government for help, but the request was rejected by Business Secretary Kwasi Kwarteng.
Jeffrey S. Stein, chief restructuring officer, said a debt restructuring agreed for Liberty Primary Metals Australia “gives the business clarity and stability and secures a clear recovery plan for creditors.”
He added: “The funding we are injecting to Liberty Steel UK puts it in a strong position for business transformation and debt restructuring. The next stage in our global refinancing will be in Europe where a significant number of new lenders are expressing interest in refinancing our steel assets.”