Sky News quotes some sources, as saying Britain’s second-largest steel producer, British Steel, is on the verge of collapse amid growing signs that an emergency government loan would fail to materialize unless a deal is reached on Tuesday.
The likely collapse will put a total of close to 25,000 jobs at risk.
“British Steel, its lenders and Whitehall are preparing for insolvency to take place within 48 hours, with EY expected to be formally appointed as administrators on Wednesday unless a deal is struck by Tuesday afternoon.
Sources cautioned that after days of brinkmanship between the different stakeholders, a compromise could yet be struck, although they conceded that such an outcome looked increasingly unlikely.
One said that British Steel’s lenders and directors had resolved to place the company into administration on Wednesday if a final deadline for a deal on Tuesday afternoon was not met.”