London — British Steel, the UK's second-biggest steel producer, was in danger of collapsing on Tuesday if the government did not agree to provide an emergency £30m loan,  said two informed sources. Owned by investment firm Greybull Capital, British Steel employs about 5,000 people, mostly in Scunthorpe in the north of England, and 20,000 more depend on its supply chain. Greybull, which specialises in turning around distressed businesses, paid former owners Tata Steel a nominal £1  in 2016 for the unprofitable company, which they renamed British Steel. British Steel asked the government for a £75m loan but later reduced its demand to £30m after Greybull agreed to put up more money, according one of the sources, who is close to the negotiations. Greybull was also the owner of Monarch, an airline that went bust in October 2017. If the British Steel loan was not approved by Tuesday afternoon, administrators EY could be appointed as early as Wednesday, the source said. British Steel a...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now