Posted on 30 May 2019
The UK government says that it has received interest from a large number of “… trade purchasers” for British Steel. The Scunthorpe-headquartered long products specialist was wound-up in the UK High court on 22 May 2019 but is continuing to trade whilst in administration.
In a statement from the Official Receiver monitored by Kallanish, the government says that good progress is being made in identifying potential buyers for the steelmaker. The Special Managers appointed by the Official Receiver have made contact with more than 80 potential trade purchasers of the business, 60 of whom have been sent non-disclosure agreements.
“As these conversations are commercially confidential no further information is able to be released,” the statement reads. “Multiple parties have signed non-disclosure agreements giving them access to a detailed information memorandum and virtual data-room that my team has developed to inform their bids. Expressions of interest are due with me by early June,” the Official Receiver says.
British Steel is continuing to trade and the company retains good support from its customers. All staff have been retained and continue to be paid, the Official Receiver adds.
It is a different set of circumstances, but the current UK government is not repeating the turgid reaction of the Cameron-led administration to steel sector problems in 2015. The scandalous lack of intervention at the time by both David Cameron and the then Business Secretary Sajid Javid allowed SSI UK in Redcar, and its 2000 steel jobs, to be lost in a matter of days.
