Unimetals makes financial distress filing

Unimetals Recycling Ltd., a United Kingdom-based metals recycling firm consisting of former Sims Metal facilities in the U.K., has filed a notice of intention (NOI) to appoint an administrator, a step toward financial reorganization in that nation.

A notice posted to the Caseboard Ltd. website indicates Unimetals filed the notice Oct. 13.

The following day, Australia-based Sims Ltd. acknowledged the legal action in a brief filing made with the Australian Securities Exchange, on which the firm’s stock is listed.

“Sims has had no involvement in the operations of the business following its sale to Unimetals in October 2024, and completed its obligations under an agreed nonferrous off-take agreement in July 2025,” the company says in that filing.

However, the company retains a receivable on its balance sheet for 35 million British pounds ($46.6 million) that is owed by Unimetals and that is partially secured by its debenture security.

A report this week fromThe Business Desk website indicates Unimetals has been unable to make its final payment to Sims Ltd. tied to the 195 million pounds ($260 million) acquisition price, likely equating to the 35 million pounds mentioned in the Sims ASX filing.

According to The Business Desk, an anticipated investor in Unimetals pulled out of a funding round that was near completion, which forced Unimetals to seek court protection.

The U.K.-based media outlet contacted Unimetals, with a spokesperson reportedly telling The Business Desk, “We have been working to refinance and recapitalize Unimetals [and] the company is now focused on a formal process and in exploring options with stakeholders as part of its wider refinancing efforts.”

Unimetals has more than 600 employees working at 28 operating sites, including three deep-water export facilities. The company’s co-founders are Jamie Afnaim and Alec E. Sellem, with biographies for both mentioning backgrounds in the metals, mining and commodities trading sectors.

Afnaim was involved in raw materials and commodity with Gemcorp (UK), Ronly Holdings and RB Metalloyd (RBM), the latter of which became known as Gerald Metals while Afnaim worked there.

Sellem’s bio does not mention any company names, but describes him as “a serial entrepreneur” with experience in developing projects in the precious metals sector, refinery operations, and artisanal and semi-industrial mining.

The Unimetals website news section has not had any content placed onto it since this March. At that time, Unimetals said itplayed a vital role in supplying high-quality scrap metal to steel manufacturers, helping reduce their reliance on virgin raw materials and reduce the sector’s carbon footprint.

“Once an NOI is submitted, the company gains legal protection against creditor enforcement actions, creating a temporary period where financial restructuring can be considered," U.K. insolvency-focused law firm Chambelain & Co. writes on its website regarding what's next for Unimetals. "However, this also means that directors will lose control of the business once an administrator is officially appointed.”