Liberty Steel is making a last-ditch attempt to save its plants in and around Rotherham and Sheffield from collapse.
On Wednesday, a court could force Liberty's speciality steel business to close over unpaid debts, putting 1,450 jobs at risk, unless the company wins an adjournment.
Liberty Steel told the BBC that discussions continue with creditors and that it ''understands the concern this will create for colleagues''.
It added that it ''remains committed to doing all it can to maintain the speciality steel business".
Government sources told the BBC they are not prepared to step in to save Liberty or any of its subsidiaries to pay off outstanding debts.
However, the government may look at stepping in if the company is forced into insolvency by the courts.
Creditors, including Harsco Metals, have petitioned the court to force the company into liquidation so that Liberty's assets can be sold to pay the money it owes.
The court could order Liberty Steel to be wound up.
One creditor, who owns a company that has worked with Liberty Steel and the plant's previous owners over several years, told the BBC: ''Of all the owners of this plant we've worked with, Liberty Steel is the worst. You don't know if you're going to be paid from one day to the next.''
He said he was owed tens of thousands of pounds by Liberty Steel and the debt is putting jobs at risk at his company.
He said he ''totally understands'' why the government might not want to support Liberty Steel financially, adding, "I hope new owners can be found with the wherewithal to run this company properly."
Liberty Steel has faced financial troubles for some time. It is owned by GFG Alliance, which owns a collection of businesses in energy, trading and steel, employing thousands of people in the UK.
Sanjeev Gupta, its executive chairman, has faced scrutiny since GFG's main lender Greensill Capital collapsed in 2021.
A spokesman for Liberty told the BBC the business had faced "additional issues" since the collapse of its main lender Greensill, which had placed "severe constraints on its ability to raise third party finance".
"Over this period Liberty has pursued all options to make its Speciality Steel UK business viable," a statement added.
