Written question asked by Lord Myners (Crossbench) on Tuesday, 11 June 2019, in the House of Lords. It was due for an answer on Tuesday, 25 June 2019. It was answered by Lord Henley (Conservative) on Thursday, 20 June 2019 on behalf of the Department for Business, Energy and Industrial Strategy.
British Steel: Loans
- Question
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To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 6 June (HL15957), whether the placement of British Steel in receivership on 25 May (1) disqualifies that company from receiving, or (2) places it at risk of not receiving, 2019 carbon credits; if so, what are the implications for the £120 million loan they made to British Steel; and whether they will now answer the original question put, namely, whether that loan was guaranteed by Greybull Capital or related parties.
- Answer
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The Deed of Forfeiture bridge facility agreed between Government and British Steel Limited provides legal protections to give Government control of 2019 EU ETS allowances, even under the scenario of insolvency.
Under the Deed of Forfeiture agreed between the company and British Steel Limited, the companyâs 2019 allowances will be assigned to the Government once issued, and the proceeds from selling these is expected to cover the costs of purchasing the allowances. Greybull are not party to this Deed of Forfeiture, and as a result of the liquidation, day-to-day control has passed to the liquidator of British Steel Limited.
The terms of the commercial agreement between Government and British Steel are set out in letters from the Permanent Secretary of the Department for Business, Energy and Industrial Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor General, copies of which have been placed in the Libraries of both Houses.
Secondary information
- Type
- Written question
- Reference
- HL16273
- Session
- 2017-19
- Related items
- Subjects
- British Steel Insolvency EU emissions trading scheme Loans Greybull Capital
- Link
- View this Written question on www.parliament.uk
Librarians' tools
- Timestamp
- 2022-06-29 11:03:07 +0100
- URI
- http://data.parliament.uk/writtenparliamentaryquestion/lords/2017-19/HL16273
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