£586m fear as steel tycoon's business goes into meltdown

DEMANDS OVER PUBLIC CASH

- BY JOHN FERGUSON

THE Scottish Government faces demands to confirm whether £586million of public cash has been safeguarded after parts of a metals tycoon's empire collapsed.

Taxpayers could be hit with crippling losses if Sanjeev Gupta’s GEG Alliance goes under as a result of the controversial deal signed by SNP ministers.

The company received massive state support to buy Dalzell steelworks in Lanarkshire and Lochaber aluminium plant near Fort William in 2016.

However, since then the firm has been mired in financial scandal and fears of bankrupcy.

Last week, insolvency courts granted a compulsory winding-up order sought by creditors owed hundreds of millions by Speciality Steels UK (SSUK) - another part of Gupta's troubled group - and it was taken into UK Government control.