British Steel goes bankrupt

The UK government has confirmed that British Steel is being administered, although no formal confirmation has yet been received from the company itself.

A manufacturing specialist, headquartered in Scunthorpe, has been in discussions with the government for a bailout loan, which is reported to be around £ 30 million ($ 38 million) since the beginning of this week. Now, UK Business Secretary Greg Clarke says negotiations between the government and the owner of Greybull Capital have broken off and arrangements are being made to call recipients.

“The government is working tirelessly with British Steel, its owner Greybull Capital and lenders to explore all possible options for securing a solution for British Steel. We have shown our commitment to action by already providing the company with a £ 120 million bridge structure to meet its emissions trading compliance costs, ”says Clark.

“The government can only act within the framework of the law, which requires that any financial support to the steel company be carried out on a commercial basis. I was informed that it would be illegal to provide a guarantee or a loan on the terms of any offers made by the company or any other party, ”continues the business secretary.

Trade union UK Steel says all is not lost. “This news is a significant blow to the company, its people and the UK communities it supports. British Steel does not perceive insolation, but is an important part of the broader UK steel sector, a strategic British industry at the heart of multiple supply chains, ”said association director Gareth Stays in a statement.

“Receivership at least leaves options on the table, including giving time to secure a new buyer. All attention should now be focused on securing the future of steel production on site and avoiding the pitfalls seen at Teesside in 2015. We are fully confident that the government is exploring every available opportunity and doing everything it can to provide a viable solution. found. We are ready to work with the government to help it do this, ”adds Stace.

May salaries were paid and June salaries were promised. According to the source, staff should behave as usual.

At the time of publication of the last full invoices for the period ending March 21, 2018, the company employed 4,238 people. Another 20,000 jobs that depend on the company's business are at risk, according to media reports.