Court upholds administration of Aartee Bright Bar

Liberty Speciality Steel's application to overturn the administration of Willenhall, Walsall-based Aartee Bright Bar has been overruled by the High Court of Justice in Manchester.

Michael Magnay, joint administrator of Aartee Bright Bar, said he hopes Alvarez and Marsal can now continue to carry out its duties "without further delay, cost or impingement".

"These include investigating the circumstances leading to Aartee Bright Bar's insolvency, and recovering as much value as we can from its assets on behalf of all creditors," Magnay said.

Jeff Kabel, chief transformation officer at Liberty, said the company has "the right plan to put ABB on the path to recovery as a solvent going concern which is supported by a majority of its creditors". Liberty would "hold the administrators to account and work with them to promote our business plan", he added.

The Gupta Family Group Alliance, of which Liberty is part, acquired Aartee group Pte on 17 February, 11 days after administrators were called into Aartee Bright Bar at the behest of its lender FGI.

It said at the time it would challenge the administration, leading to the court hearing held in Manchester on 16 March.

There are a number of interested entities for the business, according to sources within the company.

Liberty and Aartee are very closely linked.

Sanjeev Gupta, the head of Liberty, and his father were present when Aartee boss Ravi Trehan acquired the Willenhall site, formerly known as Acenta. At the time Trehan said he "would like to thank Sanjeev Gupta for sharing with us his vision for the regeneration of UK manufacturing".

Trehan was previously a member of GFG Alliance's strategic board and served as a director of Simec International. Liberty's trading arm, Liberty Commodities, sold cargoes of high-value nickel products to Aartee companies and raised money on the invoices from collapsed financier Greensill. A number of Liberty-linked entities — including Paras Commodities, of which Trehan is still a director — have also done business with Aartee.

Gianpiero Repole, the former chief executive of Aartee Bright Bar who now works for metals marketplace Reibus in Dubai, worked for Liberty Commodities for many years. Aartee employees have worked in Liberty's head office, according to numerous sources within GFG. Aartee has been storing steel tubes for Liberty in recent months, sources said.

By Colin Richardson