Update Wednesday 13 April 2016: SSI steel works: information for employees and creditors

The Insolvency Service

October 2
14:01 2015

Update 13 April 2016

Three trade unions (GMB, Unite and Community Trade Union), and some individuals, made a claim to the Employment Tribunal (ET) for a protective award. A protective award compensates employees for an employers failure to inform and consult about a collective redundancy situation in accordance with its legal obligations. The Tribunal ruled that Sahaviriya Steel Industries UK Limited (in liquidation), otherwise known as SSI UK, failed to comply with these obligations.

On 21 March 2016, the ET decided that a protective award of 90 days pay would be appropriate compensation for this failure, for employees represented by the above trade unions and some individual employees.

Because SSI UK is insolvent and unable to meet the terms of the award, the Insolvency Services Redundancy Payments Service (RPS) can arrange for some of the award to be paid out of the National Insurance Fund.

SSI Update: answers for employees (PDF, 138KB, 2 pages)

Redundancy payments enquiry line

For enquiries about redundancy payments (9am - 5pm, Monday to Friday)

If you were self-employed and provided services to SSI you are not entitled to a redundancy payment. You will be a creditor in the liquidation.

Information for creditors

If you have supplied goods or services to SSI for which you have not been paid you will be a creditor in the liquidation. Part of the business is continuing to operate and suppliers will be contacted to establish the protocols and arrangements in respect of ongoing supply to the site. To make a claim for the money you are owed email the Official Receiver providing your company details and the amount you are owed. Please put SSI creditor in the subject line of your email. If you do not have access to email you can telephone the Insolvency Enquiry Line.

Insolvency enquiry line

For information about the insolvency process contact the Insolvency Enquiry Line during office hours (9am to 5pm Monday to Friday). Emails sent outside of these times wont be received until the next working day.

We can give you general information about: insolvency, redundancy, what official receivers do, what redundancy payments offices do and where you can go to get the information or advice you need.

We cant give you: legal or financial advice, information on specific insolvency cases, information or advice on matters directly relating to other government departments.

Information for interested parties

The Official Receiver has been approached in respect of various assets at Redcar Steel Works and these approaches have or are being considered.There are a number of assets on the site including the coke ovens and the blast furnace. The Official Receiver will consider any approach for any asset, but the coke ovens and the blast furnace are no longer assets as going concerns and may only have break up value.

If you have an interest in purchasing the assets of SSI please contact the Official Receiver. Please put SSI Asset Purchase in the subject line of your email.

Information for suppliers

Any purchase orders issued by the Company before the winding up order should be considered cancelled with immediate effect. Any monies owing in relation to previous orders will rank as an unsecured claim in the liquidation. Please do not supply any goods ordered prior to the winding up order without the authorisation of the liquidator or one of his authorised representatives.

Goods and services supplied during the period of the liquidation will be paid for out of the assets coming into the hands of the liquidator provided that the order is in writing and signed by one of the authorised representatives. The liquidator is currently reviewing purchase orders issued by the Company before his appointment and is in the process of contacting relevant suppliers about those orders and providing them with details of the authorised representatives. On receipt of the first such order, you should open a new account in the Companys name for goods or services provided after the appointment of the liquidator against duly authorised orders. It is essential that you include the liquidators order numbers on all invoices for goods and services supplied during the liquidation.

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