BlackRock, the world’s biggest asset manager, is backing a controversial bid by the metals tycoon Sanjeev Gupta to retain control of his faltering UK steel empire.

Sky News has learnt that executives at BlackRock have authorised the issuance of a financing support letter which could enable Mr Gupta to continue to exert a grip on Liberty Steel’s Speciality Steels UK (SSUK) arm – which employs nearly 1,500 people in South Yorkshire.

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People close to the situation said on Monday that private capital funds managed by BlackRock had expressed a willingness to provide tens of millions of pounds to Liberty Steel UK.

One source suggested the figure could be as high as £75m.

Sky News revealed at the weekend that Mr Gupta was lining up a so-called connected pre-pack administration of SSUK that would result in it ridding itself of hundreds of millions of pounds of tax and other liabilities.

BlackRock, which declined to comment, is already understood to have provided funds to Liberty Steel in the US and Australia.

Mr Gupta is racing to finalise a deal ahead of a winding-up petition hearing scheduled for Wednesday which could result in the compulsory liquidation of SSUK.

One source close to the tycoon expressed a belief that the hearing would be adjourned, as it had been in May and July.

Begbies Traynor, the accountancy firm, is working on efforts to progress the pre-pack deal.

Whitehall sources said at the weekend that government officials had stepped up planning for the collapse of SSUK if the winding-up petition is approved.

If that were to happen, SSUK would enter compulsory liquidation within days, with a special manager appointed by the Official Receiver to run the operations.

Mr Gupta’s UK business operates steel plants at Sheffield and Rotherham in South Yorkshire, with a combined workforce of more than 1,400 people.

A connected pre-pack risks stiff opposition from Liberty Steel’s creditors, which include HM Revenue and Customs.

UBS, the investment bank which rescued Credit Suisse, a major backer of the collapsed finance firm Greensill Capital – which itself had a multibillion dollar exposure to Liberty Steel’s parent, GFG Alliance – is also a creditor of the company.

Grant Thornton, the accountancy firm handling Greensill’s administration, is also watching the legal proceedings with interest.

A Liberty Steel spokesperson said at the weekend: “Discussions are ongoing to finalise options for SSUK.

“We remain committed to identifying a solution that preserves electric arc furnace steelmaking in the UK–a critical national capability supporting strategic supply chains.

“We continue to work towards an outcome that best serves the interests of creditors, employees, and the broader community.”

Last month, The Guardian reported that Jonathan Reynolds, the business secretary, was monitoring events at Liberty Steel’s SSUK arm, and had not ruled out stepping in to provide support to the company.

Such a move is still thought to be an option, although it is not said to be imminent.

The Department for Business and Trade said: “We continue to closely monitor developments around Liberty Steel, including any public hearings, which are a matter for the company.

Other parts of Mr Gupta’s empire have been showing signs of financial stress for years.

Mr Gupta is said to have explored whether he could persuade the government to step in and support SSUK using the legislation enacted to take control of British Steel’s operations.

Whitehall insiders told Sky News in May that Mr Gupta’s overtures had been rebuffed.

He had previously sought government aid during the pandemic but that plea was also rejected by ministers.

SSUK, which also operates from a site in Bolton, Lancashire, makes highly engineered steel products for use in sectors such as aerospace, automotive and oil and gas.

The company said earlier this year that it had invested nearly £200m in the last five years into the UK steel industry, but had faced “significant challenges due to soaring energy costs and an over-reliance on cheap imports, negatively impacting the performance of all UK steel companies”.

Liberty Steel declined to comment on BlackRock’s support.

Soho House, the global network of private members’ clubs, is being bought by a group led by hotel owners MCR – valuing the business at $2.7bn (£1.99bn).

The deal will take the London-based hospitality group back into private ownership, meaning it will no longer be listed on the New York Stock Exchange.

Actor-turned-investor Ashton Kutcher will lead a consortium providing new funding to the business – and will join Soho House’s board of directors once the transaction is complete.

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MCR is the third-largest hotel owner-operator in the US and owner of the BT Tower in London.

But current shareholders – billionaire executive chairman Ron Burkle and his private equity company Yucaipa – will retain their majority controlling stakes, as will founder Nick Jones.

Private equity firms acquire businesses, invest to improve financial performance, and seek to then sell them for a profit.

Holders of common stock of the company will receive $9 cash per share, far above the closing price on Friday afternoon.

Soho House’s share price rose 16% in pre-market trading to $8.86.

It was founded in London in 1995 by Mr Jones, a restaurateur, as a meeting place for creative people.

The club developed operations in Europe, North America and Asia and is known for stylish interiors and exclusivity.

Despite only going public in 2021 the company appointed a committee to explore taking the company private as it struggled to turn a profit.

An offer had been received in December.

An AI-powered market research firm which has counted Unilever and Vodafone among its clients is on the brink of collapse.

Sky News understands that Streetbees, which was founded in 2015, has filed a notice of intention to appoint the professional services firm FRP Advisory as administrator.

Sources said that a buyer was being lined up to take control of the business in the coming days.

Streetbees’ impending collapse follows efforts to find a solvent buyer – in a process also run by FRP – over the last couple of months.

Staff are understood to have been briefed on the insolvency filing late last week.

Streetbees, which has also worked with Heineken, Ferrero and Avon, has raised tens of millions of pounds in funding from blue-chip backers.

It raised a $40m Series B funding round from investors including Lakestar, LocalGlobe and GMG Ventures – the early-stage investment arm of Guardian Media Group – in 2020.

GMG Ventures has since rebranded as Mercuri.

A spokesperson for Streetbees said: “Streetbees has engaged advisors to oversee a process aiming to secure investment or sell the business and its assets.

“We have filed a notice of intention to appoint administrators, as a protective measure, to provide the time necessary to progress discussions that are at an advanced stage.

“We will not comment further on any market speculation.”