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Written question asked by Rupa Huq (Labour) on Friday, 14 June 2019, in the House of Commons. It was due for an answer on Tuesday, 18 June 2019. It was answered by Elizabeth Truss (Conservative) on Thursday, 20 June 2019 on behalf of the Treasury.

British Steel: Loans

Question

To ask the Chancellor of the Exchequer, what recent assessment he has made of the effect of the £120 million Government loan to British Steel in May 2019 on that company's viability; and what assessment he has made of the role of Greybull Capital in that company's insolvency.

Answer

As the Secretary of State for BEIS set out in his statement to the House on 1 May, the government entered into a commercial agreement with British Steel on 23 April, which provided a short term bridge facility valued at around £120 million. This ensured the company met its obligations under the EU Emissions Trading Scheme for the 2018 scheme year.

Following the recent insolvency of British Steel, the government has indemnified the Official Receive to carry out its statutory duties as liquidator. The Official Receiver is required by law to investigate the reasons for the failure of any company that enters compulsory liquidation.

Secondary information

Type
Written question
Reference
264789
Session
2017-19
Related items
Subjects
British Steel Insolvency Loans Greybull Capital
Link
View this Written question on www.parliament.uk