British Steel, the savior of Ascoval on the brink of bankruptcy

The employees of Ascoval they have to look forward too soon? The uk government has quietly launched preparations for a possible bankruptcy of the group, British

British Steel, the savior of Ascoval on the brink of bankruptcy

The employees of Ascoval they have to look forward too soon? The uk government has quietly launched preparations for a possible bankruptcy of the group, British Steel, chosen may 2, to resume in France, a small steel mill in Saint-Saulve in the North, and its 270 employees. According to the news channel Sky News, the steelmaker is seeking in particular with government funding of £ 75 million (€86 million) to pursue its activity in the coming months. A financial support would have been decided by the british government in early may, but it has been delayed, and the steelmaker, lack of money, could be found in cessation of payments.

"thousands Of jobs in the uk are in the game, not to mention the future of our steel industry"

Ross Murdoch, head of the national union English GMB

British Steel, for its part, has confirmed discussions to get a loan, to cope with the difficulties that it puts on the account of the Brexit, while ensuring that it would comply with "all its commitments" to carry out the recovery of Ascoval "in the planned timeframe". The union English GMB did not take the information lightly. He called on the government to grant the more quickly the loan requested. "Thousands of jobs in the uk are in the game, not to mention the future of our steel industry," said Ross Murdoch, head of the national union. A bankruptcy of the steel manufacturer would threaten 5000 employees.

The government maintains its confidence

in view of The guarantees given by the steelmaker british, the French ministry of Economy and Finance led by Bruno Le Maire, has confirmed that he would keep the commitments on it. "The group's parent company British Steel has confirmed its ability to carry out the recovery of Ascoval and to provide the necessary funds in the schedule. In these conditions, the State, in agreement with the region of the Hauts-de-France and the city of Valenciennes, has confirmed its support to the project of recovery and will bring its share of funding in the negotiated conditions", wrote Tuesday the ministry in a press release.

British Steel belongs to Greybull Capital, a fund of the reversal is owned by two frenchmen, Marc and Nathaniel Meyohas. The company was founded in 2016, at a redemption by the fund of certain assets of the Indian Tata Steel in Europe, particularly in the north of England and in the Moselle. She had gained, during its creation, a famous name, that of the old steel company british national. If Greybull Capital has, in the past, resold at a profit some of its investments, other acquisitions that have filed for bankruptcy. In Saint-Saulve, where the steel mill Ascoval is established, it holds its breath.

Updated Date: 15 May 2019, 00:00

Kathleen Lees

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