LONDON – Tata Steel revealed today that it has launched legal action against troubled British rival Liberty Steel over the latter’s £100 million (RM570 million) purchase of its United Kingdom speciality steel assets four years ago.
The Indian-owned Tata Steel confirmed to AFP via email that it has begun legal proceedings over the 2017 transaction, but declined to provide details.
“As this is now an active case, we are not making any comment,” said a spokesman for Tata Steel, the European steelmaking subsidiary of Indian conglomerate Tata.
The Daily Telegraph newspaper, citing sources close to the matter, reported that the case relates to alleged missed payments.
Liberty Steel is grappling with the fallout from the collapse of its main financial backer Greensill, whose Australian parent group filed for liquidation today.
Greensill’s collapse threatens thousands of jobs, including at Liberty Steel’s parent group GFG Alliance – the steel empire of Indian-British billionaire Sanjeev Gupta.
The British government warned last week that Liberty Steel could shut some of its dozen UK plants following last month’s high-profile failure of Greensill, which provided short-term supply chain financing for businesses. – AFP, April 22, 2021
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