HomeBusinessBritish steel in liquidation

British steel in liquidation

WEEKLY NEWSLETTER SIGN UP

British Steel, the UK-based manufacturer of sections, special profiles steel rail and wire rod with plants in the UK and France, and that had been the long products division of Tata Steel until bought by Graybull Capital on 1 June 2016, went into compulsory liquidation on 22 May 2019.

The High Court appointed the Official Receiver as liquidator of the company on the petition of the company’s directors and simultaneously appointed thee executives at EY (Ernst & Young) as special managers to support him.

Greg Clark.

Secretary of State for Business, Energy & Industrial Strategy Greg Clark made a statement to parliament on the same day: “The Official Receiver has made clear that British Steel employees will continue to be paid and employed and the business will continue to trade and supply its customers, whilst he considers the position of the company. In fact, employees were paid early with the May payroll being run yesterday, through cash being advanced by the company’s lenders.

He continued: “The government will work closely with the Official Receiver and prospective new owners to achieve the best outcome for these sites. The government has provided an indemnity to the Official Receiver, who is now responsible for the operations, and we will take every possible step to ensure that these vital operations can continue, that jobs are secured, and that the sites at Scunthorpe, Skinningrove and on Teesside continue to be important centres of excellent steelworking.”

In a statement, the company said that work was continuing to identify a buyer for the whole business.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -

Latest news

Rail engineers strike gold in sustainability school

Multidisciplinary engineering business Dyer & Butler has earned Gold level status from the Supply Chain Sustainability School (SCSS). This is the highest level of membership...

Tunnel operation takes flight with help from a helicopter

Essential work on a tunnel in the Peak District got some help from high places. Helicopters helped airlift construction materials into position as part of...

Rail review author calls for rail fares reform

Keith Williams, co-author of the Williams-Shapps Plan For Rail white paper, has urged for fares reform – arguing there has never been a better...
- Advertisement -

More news

Iconic arrows get a dash of green ahead of environmental summit

The famous National Rail double arrow has turned several shades of green ahead of the COP26 UN climate summit, which takes place in November. The...

Digital signalling for East Coast main line tested on Thameslink

A test of the digital in-cab signalling system ECTS level 2 (European Train Control System) has been carried out successfully using a Govia Thameslink...

Potential union of unions across the Atlantic

In what is a possible world’s first, London-based transport and travel union the TSSA is in talks with America's International Brotherhood of Boilermakers on...
NEWSLETTER SIGN UP