British Steel to be placed into administration

23 May, 2019 12:00 AM printer

LONDON: Administ-rators from EY are in court this morning to finalise an insolvency process, the broadcaster said, after a failure to secure a £30 million pound (US$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, report agencies.

Signs of the ripple effect on related companies were already beginning to emerge.

Hargreaves Services, 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 and its profit before tax by about £1.3 million.