A tax agreement allows Sanjeev Gupta to keep his steelworks Business

Sanjeev Gupta has avoided the threat of nationalization of his UK steelworks after the metals magnate reached a settlement with HMRC over an unpaid £26million tax bill.

The IRS dropped four liquidation petitions against businesses in Mr. Gupta’s Liberty Steel empire, court records show.

The settlement came before court cases were announced, averting a wave of further claims from creditors seeking to ‘piggyback’ on HMRC’s liquidation petition.

Almost a year after the collapse of Mr Gupta’s main lender, Greensill Capital, the businessman has defied his critics by retaining control of his empire. The Serious Fraud Office is investigating its parent organization GFG Alliance and Greensill.

Mr Gupta’s luck had appeared to run out, however, with the legal claim lodged by HMRC.

Non-payment of the debt would lead to the compulsory liquidation of the four companies concerned.

Other creditors could also “piggyback” on legal claims and demand payment. Specialty Steel’s claim was to be heard later this month.

But with HMRC’s claims now dropped, the threat of nationalization in the coming weeks has been dismissed.

The case against Specialty Steel UK was dropped on Friday. Claims against Liberty Pipes (Hartlepool), Liberty Performance Steels and Liberty Merchant Bar were withdrawn on Monday.

The threat of liquidation has jeopardized at least 2,000 jobs.

Mr Gupta’s UK operations, however, face a difficult future. It is hoped that by reaching an agreement with HMRC, he can refocus on debt restructuring and put his businesses on a solid financial footing.