UK steel firm Aartee Bright Bar in administration

US-based financier FGI has called in administrators Alvarez & Marsal on UK bright bar producer Aartee Bright Bar.

"Like many businesses in its sector, Aartee 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," Michael Magnay, joint administrator at Alvarez & Marsal, said.

The FGI charge on Aartee assets was registered on 30 April 2021, according to Companies House filings. The charged securities under the agreement include Aartee Steel Group, Aartee Steel Operations, Aartee Steel Holdings and Aar Tee Industries Holdings UK.

Aartee's previous funder, RBS Invoice Finance, withdrew its support for the company in 2020. After this, the company said there was uncertainty over whether Bright Bar could continue as a going concern.

Aartee is owned by Ravi Trehan, a former director of UK steel producer Liberty Steel Newport, other Liberty companies, and a number of entities linked closely with the Gupta Family Group (GFG) Alliance. Trehan also previously had a minority stake in Liberty Commodities. Gianpiero Repole, former director of Liberty Commodities and business development manager at GFG, left his role as chief executive of Aartee Bright Bar in August 2022.

Trehan is still a director of Paras Commodities UK, which is registered to 27 Old Gloucester Street, London, like a number of entities closely linked to Liberty. Paras, like the wider Aartee group, has traded heavily with Gupta-linked entities, according to multiple ledgers and documents obtained by Argus. Wyelands Bank, which was owned by Gupta, also extended receivables financing to the wider Aartee Group including Aartee Commodities — the latter regularly traded in high-value commodities such as nickel with Liberty and closely linked companies.

Liberty and Aartee announced in December 2020 that they would combine their engineering bar divisions, but the deal was terminated as the "seller was unable to comply with certain terms of the agreement", Aartee said in a previous results filing.

Aartee is a separate business not funded by Liberty, according to a spokesperson at the latter.

Aartee Bright Bar produces and sells engineering bars through its distribution unit.

FGI did not return requests for comment.

By Colin Richardson