London Daily

Focus on the big picture.

Steel tycoon Gupta embroiled in dispute over Aartee administration

Steel tycoon Gupta embroiled in dispute over Aartee administration

Sanjeev Gupta's GFG Alliance has acquired the indirect shareholder of two steel companies which called in administrators this month amid a battle to wrestle control of them.
The steel tycoon Sanjeev Gupta has sparked a row over the administration of one of his biggest British customers after launching an attempt to take control of it.

Sky News has learnt that Mr Gupta's GFG Alliance has acquired control of a Singapore-based company called Aartee Group Pte Limited which is an indirect shareholder in two UK steel companies which collapsed into insolvency last week.

Sources said that GFG was expected to issue a statement later on Friday to confirm the purchase, and to say that it has filed a legal challenge to try to overturn the administration of Aartee Bright Bar Ltd and Aartee Bright Bar Property Ltd.

Alvarez & Marsal was appointed administrator to the two companies after Aartee's main creditor, FGI Worldwide, decided to pursue an insolvency of the businesses.

Aartee buys steel bars used in sectors such as construction and employs about 250 people in the West Midlands, Rugby, Bolton, Southampton and Newport.

The two companies remain in administration and A&M is said to be in active discussions with a significant number of interested parties about buying them and their assets.

GFG, which owns Mr Gupta's Liberty Steel empire, is expected to say that it has provided funding to cover Aartee Bright Bar's wages for four weeks to prevent job losses during the administration process.

It was unclear on Friday, however, whether that funding would be acceptable to A&M or whether any imminent redundancies were under consideration.

Mr Gupta is reported to have close ties to Ravi Trehan, Aartee's founder, while Greensill Capital, the controversial supply chain finance group which itself collapsed in 2021, is said to have financed a number of trades between the two.

In a statement issued at the time of its appointment, Michael Magnay, joint administrator at A&M, said: "Like many businesses in its sector, Aartree Bright Bar has been facing significant headwinds as a result of the challenging economic environment and fluctuating steel prices.

"Against this backdrop, administrators have been appointed and we are exploring the options available to preserve value."

Aartee Bright Bar's insolvency comes amid talks between the government and Liberty Steel's two larger competitors - Tata Steel and British Steel - about £600m of taxpayer funding to aid their transition to greener electric arc furnaces.

The funding for British Steel has been thrown into doubt by its Chinese owner's plan to axe about 800 jobs, mainly at its Scunthorpe plant.

Mr Gupta has also announced proposals to cut hundreds of jobs across his UK operations.

GFG and A&M have both been contacted for comment.
Newsletter

Related Articles

London Daily
0:00
0:00
Close
UK Maintains Non-negotiable Stance on Falklands and Gibraltar
Controversy Surrounds A75 Road Closures and 96-Mile Diversion
Crunch Time in Conservative Leadership Race
Keir Starmer's Challenges in the Wake of Sue Gray's Departure
Coroner Urges UK Government to Improve Severe ME Care
Starmer Calls for De-escalation in Middle East Amid Heightened Tensions
Chancellor Reeves Decides Against Pension Tax Hike
UK Advocates Urge Tobacco Windfall Tax and Permanent Levy
Starmer's Chief of Staff Plans Major Overhaul at Downing Street
Key Labour Thinktank Advocates New Powers for Mayors
Rachel Reeves Considers New Fiscal Rules for Infrastructure Spending
Great Britain Faces Lowest Winter Blackout Risk in Four Years
The Impact of Online Culture on Young Women: Survey Insights
Hypersonic Jet to Revolutionize Air Travel
Russian Medic Arrested for Alleged Satanism and Promoting LGBTQ Rights
UK: Chagos Islands Deal Was About Securing US Military Base
RT has converted key archive speeches delivered by Putin into spoken English using the help of AI
Walmart is now selling a new book titled The Achievements of Kamala Harris—and all the pages are blank.
Bill Gates: "6% of global emissions are cows... You can either fix the cows to stop them farting, or you can make beef without the cow."
Facilitated Communication: Miracle Tool or Manipulative Method?
The Allure of Browsing Online Property Portals: A Modern Obsession
Suspected Acid Attacker in London Bailed Amid Investigation
Tragic Channel Crossing: Four Migrants Killed
Labour Cabinet Ministers' Stances on Assisted Dying
The Influence of Tory Members on Party Leadership
UK Plans Major Overhaul of Employment Rights
UK Food Industry Lobbying Delays £1.7 Billion Plastic Packaging Tax
New UK Tipping Law Sparks Confusion Among Restaurant Staff
Debate Heats Up Over Assisted Dying Legislation in the UK
New Personalized Cancer Therapies Undergo Extensive Clinical Study
UAE Energy Minister: OPEC+ Doing a 'Noble' Job in Balancing Oil Market
Call for Wealth Tax Hikes to Curb Reform UK's Rise
Labour MP Supports Chancellor's Rejection of Wealth Tax
Debate Intensifies Over VAT Introduction for UK Private Schools
Israel Plans Retaliation Against Iran Amid Rising Regional Tensions
Norwegian Police Conclude 'Spy Whale' Hvaldimir's Death Due to Infection
Dominica Sells Citizenship to Boost Climate Resilience
Greta Thunberg Detained in Brussels During Protest Against Fossil Fuel Subsidies
UK Returns Chagos Islands to Mauritius After Decades-Long Dispute
UK Reaffirms Commitment to Overseas Territories Amid Falkland Islands Dispute
France's Silent March Supports Gisèle Pelicot: A Shocking Case
Robert Jenrick's Leadership Prospects: Challenges from the Right
Declining Interest in Grammar Schools Amid VAT Concerns
Emirates Bans Pagers and Walkie-Talkies on All Flights
Malaysian Father Burns Son's Motorbike to Prevent Racing Accidents
Donald Trump Urges Israel to Hit Iran's Nuclear Facilities First
Private Schools Face Enrollment Decline Due to Impending VAT on Fees
Wetherspoon’s CEO Criticizes Smaller Beer Glass Proposal and Licensing Hour Reduction
Starmer Defends UK Chagos Islands Decision Amidst Tory Criticism
Naomi Campbell Banned from Charity Work After Fashion for Relief Mismanagement
×