British Steel needs UK state loan of £30m or risks collapse
If the loan is not approved by Tuesday afternoon, administrators EY could be appointed for British Steel as early as Wednesday, a source says
London — British Steel, the UK’s second-largest steel producer, is on the brink of collapse unless the government agrees to provide an emergency £30m loan by later on Tuesday, a source close to the situation said. The steelmaker, owned by investment firm Greybull Capital, employs about 5,000 people, mostly in Scunthorpe, in the north of England, while 20,000 more depend on in its supply chain. Greybull, which specialises in turning around distressed businesses, paid former owners Tata Steel a nominal £1 in 2016 for the loss-making company, which they renamed British Steel. British Steel had asked the British government for a £75m loan but has since reduced its demand to £30m after Greybull agreed to put up more money, according to the source close to the negotiations. If the loan is not approved by Tuesday afternoon, administrators EY could be appointed for British Steel as early as Wednesday, the source said. "The UK steel industry is critical to our manufacturing base and is strat...
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