In addition, several sources said that the producer has been asking for early payment for material already rolled for customers that agreed deals earlier.
“Raw material suppliers ask Liberty Steel to pay upfront, so it needs to get cash to pay for scrap and other raw materials,” an Italian source said.
Earlier this month, raw materials suppliers to Liberty sites in the UK and Europe were said to be demanding cash-in-advance from the company after
news emerged about an investigation into Greensill Bank.
On March 3, German financial watchdog Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) imposed a moratorium on Greensill Bank, which is the key funding facility for GFG Alliance, parent company of Liberty Steel. On March 8, Greensill Capital, the bank’s own parent company, filed for insolvency.
This situation has been contributing to...
