British steel in liquidation

Britsih Steel's Scunthorpe works.

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.

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