May 14, 2019 4.22 pm This story is over 58 months old

British Steel seeks £75m as “Brexit issues” threaten collapse

Thousands of jobs are on the line
British Steel entered compulsory liquidation after rescue talks between Greybull Capital and the government broke down.

British Steel is seeking a £75 million government loan to keep afloat, blaming what it calls “Brexit related issues”.

The firm, which employs 4,500 people at its Scunthorpe site and several sister sites is reportedly in talks over a rescue package.

If the funding crisis at the prominent manufacturer worsens, it could signal thousands of job losses.

British Steel secured a £120 million loan from the government just two weeks ago to pay its EU carbon bill, meaning the company narrowly avoided a steep fine over its carbon dioxide emissions.

A British Steel spokesperson said: “The uncertainties around Brexit are posing challenges for all businesses including British Steel, and we are holding constructive discussions with our stakeholders on how to navigate them.

“Last month the company agreed a short-term bridge facility with government to help it meet its EU emissions obligations, and discussions are continuing about a package of additional support to assist the company address broader Brexit-related issues, whilst continuing with its investment plans.”

The firm is said to have suffered a slump in orders since the 2016 referendum and an escalating US-China trade war.

Sky News reported that insolvency experts have been called in in case British Steel cannot meet financial demands.

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