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British Steel claims to get liquidity from owners, lenders to avoid collapse


Devdiscourse News Desk london United Kingdom
Updated: 17-05-2019 21:04 IST
British Steel claims to get liquidity from owners, lenders to avoid collapse

British Steel had stated Tuesday that it was seeking more state support to help ensure its survival -- but the UK government has refused extra funds, according to the BBC.

British Steel said Friday it has secured the "required liquidity" from owners and lenders to avoid its collapse, as the troubled steelmaker battles "significant" Brexit strains and sector turmoil. "British Steel has the backing of its key stakeholders, including shareholders and lenders, and operations continue as normal," a company spokeswoman said.

"As the business navigates the significant uncertainties caused by Brexit, and explores options to strengthen the business for the long term, we are pleased to confirm that we have the required liquidity while we work towards a permanent solution. "We are grateful for the support that our stakeholders and the British government have provided to date." British Steel had stated Tuesday that it was seeking more state support to help ensure its survival -- but the UK government has refused extra funds, according to the BBC.

A collapse of British Steel would have sparked the loss of up to 5,000 jobs at the group's sprawling steelworks in Scunthorpe, northern England. The government agreed two weeks ago to inject �100 million ($129 million, 115 million euros) in funding to help British Steel pay its latest carbon emissions bill to the European Union.

This week's developments come amid uncertainty over the future of Tata Steel's main European operations based in the UK after German industrial conglomerate ThyssenKrupp last week scrapped merger plans with the Indian giant. A deal was seen as positive for Tata's Port Talbot plant in Wales that employs more than 4,000 staff. Following the merger collapse, ThyssenKrupp said it would slash 6,000 jobs worldwide in a structural shakeup.

(With inputs from agencies.)

COUNTRY : United Kingdom

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