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You can find the current article at its original source at https://www.theguardian.com/business/2019/may/14/british-steel-asks-for-state-help-to-avert-brexit-related-collapse
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| British Steel asks for state help to avert 'Brexit related' crisis | British Steel asks for state help to avert 'Brexit related' crisis |
| (32 minutes later) | |
| Britain’s second largest steel firm has asked the government for emergency funding to prevent it from collapse, blaming “Brexit-related issues”. | Britain’s second largest steel firm has asked the government for emergency funding to prevent it from collapse, blaming “Brexit-related issues”. |
| British Steel, which employs 4,500 people at the Scunthorpe steelworks and several sister sites, is understood to be in talks with its lenders and the government over a £75m rescue package. | British Steel, which employs 4,500 people at the Scunthorpe steelworks and several sister sites, is understood to be in talks with its lenders and the government over a £75m rescue package. |
| The government is thought to have drawn up contingency plans in case of its collapse. Parts of the business could face administration as soon as Wednesday, according to a report by Sky News. | The government is thought to have drawn up contingency plans in case of its collapse. Parts of the business could face administration as soon as Wednesday, according to a report by Sky News. |
| Talks aimed at saving British Steel, whose Scunthorpe site is one of the country’s last two integrated steelworks and supplies Network Rail, come less than a fortnight after the government provided an emergency £120m loan to the firm. | Talks aimed at saving British Steel, whose Scunthorpe site is one of the country’s last two integrated steelworks and supplies Network Rail, come less than a fortnight after the government provided an emergency £120m loan to the firm. |
| The money is intended to cover a bill from the European Union over its carbon dioxide emissions. | The money is intended to cover a bill from the European Union over its carbon dioxide emissions. |
| The business secretary, Greg Clark, told parliament that British Steel would have faced a bill of more than £600m from EU regulators if the government had not given it the support. | The business secretary, Greg Clark, told parliament that British Steel would have faced a bill of more than £600m from EU regulators if the government had not given it the support. |
| The Department of Business, Energy and Industrial Strategy said it could not comment on speculation about injecting fresh funds. | The Department of Business, Energy and Industrial Strategy said it could not comment on speculation about injecting fresh funds. |
| But 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. | But 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, while continuing with its investment plans.” | |
| The crisis at British Steel has erupted three years after it was rescued by the investment firm Greybull Capital, after the Indian conglomerate Tata pulled out. | |
| Greybull’s investment appeared to have secured the company’s future. Within months of the rescue, the company reversed a salary cut for staff and predicted a return to profitability. | |
| The investment group was until last year run by the little-known Meyohas brothers, Marc and Nathaniel, two London-based French investors who specialise in reviving distressed companies but who failed to save Monarch Airlines and were criticised during the collapse of electricals retailer Comet. | The investment group was until last year run by the little-known Meyohas brothers, Marc and Nathaniel, two London-based French investors who specialise in reviving distressed companies but who failed to save Monarch Airlines and were criticised during the collapse of electricals retailer Comet. |
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| Brexit | Brexit |
| Manufacturing sector | Manufacturing sector |
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