Workers at collapsed firm Speciality Steel told they will receive their pay for August

Workers at the UK's third-largest steelworks, in South Yorkshire, have been assured they will receive their pay for August as well as unpaid pension contributions after a government-appointed special manager took over the collapsed company.

- Jasper Jolly

Liberty Steel's main British business, Speciality Steel UK (SSUK), was put into administration on Thursday after a high court judge ruled that it was insolvent and that its owner, the metals tycoon Sanjeev Gupta, had no prospect of repaying debts of several hundred million pounds.

The judge approved an application by the government's official receiver to appoint special managers from the advisory company Teneo.

A Teneo senior managing director was in court on Thursday and made contact with Liberty Steel executives immediately after the hearing.

Union leaders representing SSUK's 1,450 workers met the special managers on Thursday night, seeking assurances on pay and pensions, as well as on when operations could restart at sites including Rotherham and Stocksbridge in South Yorkshire, after a year without work.

Roy Rickhuss, the general secretary of Community, the biggest steelworking union, said he had "received firm assurances" on pay and pensions.