Liberty Steel has appointed four new members of the board of directors who will lead and accelerate the restructuring and refinancing. The appointments represent a step forward in Liberty’s response to the collapse of its main lender, Greensill Capital, the company said.
Liberty Primary Steel and Mining Australia have agreed on environment terms to refinance Greensill’s exposure. Record steel prices and Liberty’s operational improvement program have kept its core businesses strong since the start of the year.
The new appointments will immediately join Liberty’s board of directors and form a new Restructuring and Transformation Committee (RTC), chaired by an independent director of restructuring (CRO). It will include an independent director of transformation (CTO), chief executive officer (CGO) and a newly appointed CFO. The RTC will be supported by Liberty’s leadership and will report to the full Liberty council.
“RTC will be given full autonomy to restructure Liberty’s operations to focus on core profitable divisions and fix or sell underperforming divisions,” Liberty Steel said. “This restructuring, combined with the continued activity of the steel and iron ore markets, will create a solid foundation for the future of Liberty.”
RTC will work to “negotiate a friendly solution with Greensill administrators and other stakeholders that protects value and delivers the best possible outcome for all stakeholders,” the company adds.
Jeffrey Stein, a certified repair and maintenance technician from the United States, will be the CRO and Jeff Kabel, Chairman Emeritus of the International Steel Trade Association (ISTA), will be the CTO.