Official receiver appointed as liquidator at British Steel thousands of jobs at risk at the company and its supply chain
The official receiver has been appointed as liquidator at British Steel with thousands of jobs at risk at the company and its supply chain. The business is continuing to trade and its staff currently remain employed.
British Steel Ltd was wound-up in the High Court today (22 May 2019). The government’s official receiver will now take charge of the business, after talks between the government and its owner Greybull Capital broke down.
The UK’s second-biggest steel maker had been trying to secure £75m in financial support to help it to address “Brexit-related issues”. British Steel employs 4,200 people directly in the UK in Scunthorpe, Skinningrove and Redcar, as well supporting thousands of roles in its supply chains.
The court has appointed Hunter Kelly, Sam Woodward and Alan Hudson of EY to act as special managers to assist the official receiver with his duties as liquidator.
The Scunthorpe-headquartered company is continuing to trade and supply its customers while in liquidation. Staff will continue to be employed and the special managers are engaging with employee representatives to keep them informed about the progress of the liquidation.
British Steel had been seeking a £30m loan from the UK government. Shareholders and lenders agreed to provide backing to enable operations to continue in the short term.
A £120m government loan was previously provided to the company in April to enable it to meet its obligations under EU emissions regulations.
A statement from the official receiver said: “The immediate priority following my appointment as liquidator of British Steel is to continue safe operation of the site. I appreciate that this a difficult time for the company’s employees and I want to thank them for their ongoing cooperation.
“The company in liquidation is continuing to trade and supply its customers while I consider options for the business. Staff have been paid and will continue to be employed.
“The court also appointed Special Managers to assist me with my work and they are engaging with staff and their representatives to keep them informed, as well as contacting British Steel’s customers.”