Liberty Steel Sanjeev Gupta on Tuesday resumed partial production at its plant in Rotherham in the north of England after a period of disruptions since March 12, the company said in a statement.
Gupta’s main financial backer, Greensill Capital, went bankrupt last month. Liberty Steel is part of Gupta’s GFG Alliance conglomerate, which said in March it was in talks with Greensill administrators over a production suspension agreement.
In filing for bankruptcy last month, Greensill said GFG, its largest client, warned in February that it would “go bankrupt” if the supply chain financial firm stopped providing it with working capital.
A spokesperson for Liberty said Liberty’s customers and suppliers support “self-help measures such as matching our current inventory with customer orders,” and that the company “works with customers to meet conditions that bring cash early.”
“The group continues to work on solutions to secure additional working capital to fill the funding gap left by Greensill and (in the meantime) is using a vacation scheme.”
The spokesperson declined to provide details of the stock agreement with the buyer, the conditions that would allow cash to be received earlier, or additional working capital.