Update as GFG continues fight to save steel jobs in Willenhall and Dudley
The group that has bought collapsed steel supplier Aartee Bright Bar in Willenhall has denied that it owes £13.7 million to the business.
Administrators of ABB claim that the money is owed by GFG Alliance Group.
The administrators from Alvarez & Marsal think there is a realistic prospect that creditors would be repaid if the debt is repaid.
ABB was bought by GFG on February 23 after it went into administration following a creditor dispute.
It has since provided funding to cover wages for four weeks to prevent a reduction in jobs expected under the administration.
GFG says its rescue plan would save 250 steel jobs at Planetary Road, the hot rolled bars division at Peartree Lane, Dudley and the distribution arm.
It has applied to overturn the administration process of Aartee Bright Bar, with a court hearing due to take place later this month.
GFG Alliance issued a statement saying: “Any ABB inter-company balances pre-date our very recent ownership and in fact also pre-date the acquisition of the business (formerly known as Accenta Steel Group) by Aartee Group in 2018. We understand these funds have already been reinvested in ABB and its sister company. The administration process is unjustified and unnecessary, and we will fight it through our application to the court to get it overturned.
"Our position in the UK steel sector and the complementary nature of our business means we provide the best solution for ABB and its workforce, and our rescue plan to save a vital part of the UK steel supply chain and 250 viable steel jobs continues to have the support of a majority of ABB’s creditors.
"The alternative will mean significant job losses with a break up and fire sale of the business assets. We and specialist advisors will be making detailed submissions to the court on our business plan for ABB at the full hearing expected to take place in mid-March."
