Brexit chaos and no end – British Steel is bankrupt

In the last few days it was “only” a question of whether the British government was prepared to give British Steel an emergency loan of allegedly 30 million pounds. What a tiny sum of money. 30 million pounds as emergency aid for thousands of jobs which are in danger? But the other way around the British government must have asked: Hey guys, dear financial investors. You are the owners. Why don’t you pump 30 million extra pounds into your property?

British Steel is bankrupt

Anyway. As if the British government could need more problems in times of total Brexit chaos. As the government officially announced a few moments ago British Steel, Britain’s second largest steel producer is bankrupt! A courthouse has placed the company under bankruptcy administration. The forced administrator officially says that his most important task now is to ensure the ongoing operation of British Steel. The company which is now in liquidation will continue its deliveries and customer business while he discusses future options as administrator.

The government currently justifies the lack of credit as follows. Emergency aid of 120 million pounds has already been granted. However, no additional loans could be given as this was illegal based on what the owner had offered. They know that this is now a disturbing time for thousands of employees.

British Steel itself has not yet made any official statements. But we can assume that thousands of jobs will be cut. Especially now. Especially now when the British people are going to the EU elections on the weekend and London is in a total political crisis. What would it be like from the citizens’ point of view, if the government were just watching how thousands of steel jobs are lost?

British Steel headquarters in Scunthorpe. Photo: Alan Murray-Rust CC BY-SA 2.0

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