Rotherham Council says it intends to submit a claim to administrators for the outstanding balance.
Government has taken over site after owners' collapse, with future uncertain if a buyer is not found.
Lee Bradshaw is one of many employees stood down from their shift in Rotherham due to a lack of work.
Speciality Steel UK, part of the Liberty Steel Group, has plants in Rotherham and Sheffield.
A court will decide whether the firm should be wound up on Wednesday
Liberty Steel says it is consulting with its 127 workers as the Scunthorpe plant faces closure.
The government says it is working to secure a "sustainable and competitive" future for steel.
Union leaders say plans to mothball factories and cut production is a 'body blow' to workers.
Liberty Pressing Solutions is to finally close at the end of the month, Unite the union says.
