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TATASTLBSL - Tata Steel BSL News Story

₹24.05 0.6  2.3%

Last Trade - 11:16am

Sector
Basic Materials
Size
Small Cap
Market Cap £262.1m
Enterprise Value £1.87bn
Revenue £1.69bn
Position in Universe 441st / 3002

UPDATE 2-British Steel to be placed into administration -report

Wed 22nd May, 2019 9:17am
(Adds report of administration)
    LONDON, May 22 (Reuters) - British Steel, the country's
second largest steel producer, will be placed into
administration as early as Wednesday, Sky News reported,
jeopardising some 25,000 jobs.
    Administrators from EY are in court this morning to finalise
an insolvency process, the broadcaster said, after a failure to
secure a 30 million pound ($38 million) loan from the
government.
    Owned by investment firm Greybull Capital, British Steel
employs around 5,000 people, mostly in Scunthorpe, in the north
of England, while 20,000 more depend on its supply chain.
    Signs of the ripple effect on related companies were already
beginning to emerge.
    Hargreaves Services  HASE.L , which supplies materials
handling and other services to British Steel, said if the
company ceases to trade, this could reduce Hargreave's revenue
in next full year by 11 million pounds and its profit before tax
by about 1.3 million.  urn:newsml:reuters.com:*:nL4N22Y1O7
    "The situation with British Steel is very difficult,"
Michael Gove, Britain's environment minister,  had earlier told
BBC radio. 
    "I'm afraid I cannot pre-empt what the business secretary
may say later," he added. 
    Greybull Capital, which specialises in trying to turn around
distressed businesses, paid former British Steel owners Tata
Steel  TISC.NS  a nominal one pound in 2016 for the loss-making
company.
    British Steel had asked the government for a 75 million
pound loan but has since reduced its demand to 30 million pounds
after Greybull agreed to put up more money, according to a
source who is close to the negotiations.    
($1 = 0.7897 pounds)

 (Reporting by Costas Pitas and Guy Faulconbridge; editing by
Michael Holden/Keith Weir)
 ((Costas.Pitas@thomsonreuters.com; 02075428024; Reuters
Messaging: costas.pitas.thomsonreuters@reuters.net and @Cpitas
on Twitter))
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