Liberty Steel is making a final attempt to save the plants around Rotherham and Sheffield from collapse.

On Wednesday, the court could force Liberty’s specialist steel business to offset outstanding debts, putting 1,450 jobs at risk unless the company wins an adjournment.

Liberty Steel told the BBC that the discussion with creditors continued and “understand the concerns this will bring to colleagues”.

It added that it remains committed to doing everything it can to maintain the specialty steel business”.

Government sources told the BBC they are not ready to step in to save freedom or any of its subsidiaries to pay off outstanding debts.

However, the government may consider whether to step in or not if the company is forced into bankruptcy by the court.

Creditors, including Harsco Metals, have asked the court to force the company to liquidate so that they can sell free assets to pay their owed money.

The court can order the Liberty Steel to be ended.

A creditor owns a company that works with Liberty Steel and the former owner of the plant told the BBC for several years: "Of all the owners of the plants we work with, Liberty Steel is the worst. You don't know if you'll get paid from one day to the next."''

Liberty Steel owed tens of thousands of pounds and debt put his company at risk, he said.

The creditor told the BBC that he "full understanding" why the government may not want to support Liberty Steel financially, adding: "I hope I can find a new owner with new owners like this to run the company correctly".

Rotherham's labor MP Sarah Champion said the situation in Free Steel was "disturbing deep" and added that Free Plants are crucial to the characteristic steels of aerospace, defense and Formula One.

“I have repeatedly urged the government to take all the necessary steps to protect the plants and labor,” she said. “I will continue to do everything I can to protect the steel production in Rotherham.”

Last month, the government controlled British steel after gaining the power to empower in an emergency vote in Parliament.

Now it is responsible for the day-to-day operation of the factory to ensure the supply of the coal needed to maintain its explosive furnace.

The government said it is looking for business partners, but nationalization of the factory is the most likely option.

A spokesperson for the Ministry of Commerce and Trade said: "We continue to closely monitor the development of Liberty Steel, including any public hearings, which is of course a problem for the company.

“Ultimately, freely manage the company’s future business decisions, and we hope it will succeed in continuing its plans on a sustainable basis.”

British Steel said it faces significant challenges due to rising energy costs and over-reliance on cheap imports and said it would take some time to achieve the improvements necessary to make it competitive.

Liberty Steel sought court approval last November to restructure its Specialty Steel Division to reduce its liabilities, but said last week it failed to reach an agreement with its creditors.