The U.K.'s third-largest steelworks has been placed under government control, creating an uncertain future for nearly 1,500 workers at the Speciality Steels UK (SSUK) operations in Rotherham and Stocksbridge in South Yorkshire, reports BBC News.

The company, which uses scrap metal to manufacture steel, is owned by Liberty Steel, in turn owned by controversial tycoon Sanjeev Gupta. British insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds, and the facilities will now be placed in the hands of the official receiver — a government appointed liquidator — and special managers from consultancy firm Teneo.

The government has agreed to cover the ongoing wages and costs of the plant while a buyer is sought.

Following the High Court decision on August 21, Liberty Steel's chief transformation officer Jeffrey Kabel told the BBC he was "really disappointed" as he thought they had "presented a very good case."

The judge found the firm was "hopelessly insolvent" with £600,000 in the bank, a monthly wage bill of £3.7m, supported by a parent group that has 15 entities in insolvency proceedings across nine jurisdictions.

Lawyer for the creditors, Ryan Perkins, argued U.K. steel-making would be better served if the company's assets were sold off with assistance from independent special managers acting on behalf of the government after it is wound up, rather than allowing administrators appointed by Gupta to conduct the process.

A spokesperson for the government said that it remains "committed to a bright and sustainable future" for steelmaking in the U.K.