British Steel chief executive Gerald Reichmann has been encouraged by the level of interest shown by bidders for the business, underlining how the focus remains on securing a buyer for the whole operation.
In liquidation after debts of £880 million were revealed in a High Court hearing, the Scunthorpe-headquartered manufacturing giant continues to trade, with indemnities provided by the government. It had previously rebuffed pleas for financial support from removed owner Greybull, due to the perilous financial position.
The Official Receiver, brought in following British Steel being placed into compulsory liquidation, continues to focus on finding a buyer for the whole operation, with sites in the North East as well as North Lincolnshire. A total of 5,000 direct jobs are on the line, with thousands more in the supply chain.
Mr Reichmann, who was elevated from financial director just months before it was plunged into crisis, said: “ “I am pleased to say there has been an encouraging level of interest in the sale of our business from a number of bidders.
“Due to the complicated nature of the group and its businesses, the evaluation and clarification of the offers received will take time. Further engagement with the interested parties and stakeholders will likely take a couple weeks, before a further announcement on the sale process will be made.
“We remain committed to trying to secure the long-term future of the overall business, and we continue to trade and supply our customers as normal during this process.
“The British Steel Support Group, chaired by the Business Secretary, Greg Clark MP, and comprising local politicians, British Steel management, trade unions and sector representatives continues to meet regularly.
“We are incredibly grateful for the ongoing commitment and dedication of our colleagues who continue to produce record levels of our high-quality products for our valued customers during this process.”
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Scunthorpe MP Nic Dakin told how the weekly British Steel Support Group meeting chaired by Secretary of State, Greg Clark, heard how bids are in and are being evaluated.
“Hopefully there will be a strong bid from a serious player that can help us begin a new chapter of positive steelmaking locally,” he said, having been encouraged by an update from a potential major customer and partner too.
“I caught up with Heathrow Airport who continue to deliver on their promise to use 海角视频 steel for their projects,” he said. “This is the sort of approach to large scale projects that should be celebrated as best practice.”
British Steel is a shortlisted site for a logistics hub for the London airport’s expansion, but much will depend on the bidding outcome as to whether it will be considered.
Mr Dakin also acknowledged Network Rail's 'insurance policy' of a bid for the track facilities, underlining the "reiterated support" for British Steel.