One of Britain’s biggest metals recycling businesses is scrambling to find a buyer within days as it tries to salvage the future of its 650-strong workforce.
Sky News has learnt that advisers to Unimetals Group have set a deadline of Wednesday for initial offers from prospective buyers of the business.
Unimetals operates 27 sites across the UK, collecting, processing and shredding metallic waste to produce raw materials for copper, aluminium and steel producers both in Britain and abroad.
A Whitehall source said the government was monitoring the crisis at the company because of its role, in particular, in the UK’s steel supply chain.
Alvarez & Marsal (A&M), which has been advising the company, is on standby to be appointed as administrator, potentially in the coming days.
However, industry sources said a number of viable offers for Unimetals were expected to be submitted ahead of Wednesday’s deadline.
Unimetals completed the £195m purchase of rival Sims Metals last year, but is reported to have failed to make at least one deferred payment as part of the transaction.
Money latest: Inflation blow expected tomorrow; UK city imposes £5 congestion charge
Inside ‘data centre alley’ – the biggest story in economics right now
Shoe chain Russell & Bromley puts best foot forward with debt plan
Be the first to get Breaking News
Install the Sky News app for free
In a statement issued last week, a Unimetals spokesperson said: “In recent months we have been working to refinance and recapitalise Unimetals Recycling (UK) Ltd to create additional liquidity and address the deferred consideration due to Sims.
“It was recently confirmed to us that our main new investor would not participate in this funding round, despite the transaction being in near final form.
“The company’s goal is to secure investment to ensure the continued stability of operations and protect the long-term interests of employees, creditors, customers, and suppliers.”
