British Steel Compulsory Liquidation - 22 May 2019

[whole diary]

[SandTEngineer]

Oh dear: https://www.bbc.co.uk/news/business-48365241

British Steel has been placed in compulsory liquidation, putting 5,000 jobs at risk and endangering 20,000 in the supply chain.

The move follows a breakdown in rescue talks between the government and the company's owner, Greybull.

The Government's Official Receiver has taken control of the company as part of the liquidation process.

The search for a buyer for British Steel has already begun. In the meantime, it will trade normally.

The Official Receiver said British Steel Ltd had been wound up in the High Court and the immediate priority was to continue safe operation of the site.

The company was transferred to the Official Receiver because British Steel, its shareholders and the government were not able to, or would not, support the business. That meant the company did not have to funds to pay for an administration.

The other companies within the British Steel group are continuing to trade as normal and are not in insolvency.

British Steel customer Network Rail sources 95% of its rails from British Steel's Scunthorpe plant.

In a statement, the rail infrastructure operator said it had been working closely with British Steel and the government for "many weeks".

"We have done what we can to help ease the company's financial difficulties. We have improved our order book with the company - increasing rail production volumes, bringing orders forward and committing to a long term schedule - as well as offering immediate payment to ease the pressure on cash flow."

It is understood the company has enough stockpiles to keep it going until other suppliers can increase production.

Now, lets wait and see all those hard right Tory BREXITEERS stand up and vote to nationalise it to start rebuilding a 'free' Britiain.........

[ChrisB]

Frankly, the Hedge fund owner is mainly to blame, and yes, their EU^» (European Union - about) order have dried up, so those mainly *left-wing* Labour voters/BS workers hoodwinked into voting brexit are to blame. The former loading the company with debt so it can't stand upright...

[Robin Summerhill]

Now, lets wait and see all those hard right Tory BREXITEERS stand up and vote to nationalise it to start rebuilding a 'free' Britiain.........

Well it's not currently looking like they are.

Meanwhile, a fair proportion of the residents of Scunthorpe who supported Brexit appear to be amongst the first to find they voted for a P45.

_{(You know, there's another forum I post on where, if you type the word Scunthorpe, their software censors it - it doesn't seem to like a four-letter combination withn it...    )}

[grahame]

You know, there's another forum I post on where, if you type the word Scunthorpe, their software censors it - it doesn't seem to like a four-letter combination withn it...    )

Posting from Westbury, where the lack of an hourly TransWilts service leave me marooned for the best part of 90 minutes.

I will probably split this off when I get home ... off topic response on a very serious topic

We also allow Penistone and Arsenal.  Places like Llanfairpwllgwyngyllgogerychwyrndrobwllllantysiliogogogoch and Taumatawhakatangi­hangakoauauotamatea­turipukakapikimaunga­horonukupokaiwhen­uakitanatahu also allowed - although for all I know they might contain naughty words.

[Timmer]

Meanwhile, a fair proportion of the residents of Scunthorpe who supported Brexit appear to be amongst the first to find they voted for a P45.

Nothing to do with China flooding the market with cheap steel then?

[grahame]

From The BBC^» (British Broadcasting Corporation - home page) - relevance to rail travel ...

How have customers reacted?

British Steel customer Network Rail sources 95% of its rails from British Steel's Scunthorpe plant.

In a statement, the rail infrastructure operator said it had been working closely with British Steel and the government for "many weeks".

"We have done what we can to help ease the company's financial difficulties. We have improved our order book with the company - increasing rail production volumes, bringing orders forward and committing to a long term schedule - as well as offering immediate payment to ease the pressure on cash flow."

It is understood the company has enough stockpiles to keep it going until other suppliers can increase production.

[patch38]

Taumatawhakatangi­hangakoauauotamatea­turipukakapikimaunga­horonukupokaiwhen­uakitanatahu

Splendid. What we need in these troubled times is a reminder of Kenny Everett.

(Sorry Graham - keeping a serious topic off-topic...)

[SandTEngineer]

From The BBC^» (British Broadcasting Corporation - home page) - relevance to rail travel ...

How have customers reacted?

British Steel customer Network Rail sources 95% of its rails from British Steel's Scunthorpe plant.

In a statement, the rail infrastructure operator said it had been working closely with British Steel and the government for "many weeks".

"We have done what we can to help ease the company's financial difficulties. We have improved our order book with the company - increasing rail production volumes, bringing orders forward and committing to a long term schedule - as well as offering immediate payment to ease the pressure on cash flow."

It is understood the company has enough stockpiles to keep it going until other suppliers can increase production.

Bit of duplication there Grahame.  That was in my original post.

[grahame]

Bit of duplication there Grahame.  That was in my original post.

Oops - bit lot of busy day here - two meetings and so far 3 meetings between meetings too!   Great minds think alike though  . At least one more meeting to come ... duplication reduction tomorrow!

[TaplowGreen]

Bit of duplication there Grahame.  That was in my original post.

 ... duplication reduction tomorrow!

Is that a surgical procedure? If so hope all goes well! 

[CyclingSid]

I am not sure that the benefit of not having spotty sheets on the washing line will out weigh the lack of income.

[Lee]

The now uncertain fate of Ascoval, the steel mill that was itself in receivership until British Steel bought it recently, is big news over here in France today.

[SandTEngineer]

NR^» (Network Rail - home page) statement here: https://www.networkrail.co.uk/british-steel-insolvency/

We have been working closely with British Steel and colleagues across government for many weeks. We have done what we can to help ease the company’s financial difficulties. We have improved our order book with the company – increasing rail production volumes, bringing orders forward and committing to a long term schedule – as well as offering immediate payment to ease the pressure on cash flow. However we have today been officially informed that British Steel has entered insolvency proceedings.

British Steel is a major supplier to Network Rail, providing around 100,000 tonnes of rail a year and playing a major part in our plans to maintain, renew and upgrade the railway.

We are confident that we remain able to carry out critical work on the railway in the coming months and beyond. Longer term we have plans in place so that we can continue to deliver the reliable railway millions of people depend on every day.

We understand this is a very worrying time for British Steel employees and we will work with the liquidator and continue to offer our support.

[Robin Summerhill]

Meanwhile, a fair proportion of the residents of Scunthorpe who supported Brexit appear to be amongst the first to find they voted for a P45.

Nothing to do with China flooding the market with cheap steel then?

The company reported that orders from Europe had dried up because they don't want to do business with UK^▸ (United Kingdom) companies due to uncertainty over Brexit.

[jamestheredengine]

_{(You know, there's another forum I post on where, if you type the word Scunthorpe, their software censors it - it doesn't seem to like a four-letter combination withn it...    )}

_{My favourite of this genre from years ago was another forum where "my assumptions" became "I disagreeumptions".}