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British Steel says secures liquidity lifeline

AFP  |  London 

said Friday it has secured the "required liquidity" from owners and lenders to avoid its collapse, as the troubled steelmaker battles "significant" strains and sector turmoil.

"has the backing of its key stakeholders, including shareholders and lenders, and operations continue as normal," a said.

"As the business navigates the significant uncertainties caused by Brexit, and explores options to strengthen the business for the long term, we are pleased to confirm that we have the required liquidity while we work towards a permanent solution.

"We are grateful for the support that our stakeholders and the have provided to date." had stated Tuesday that it was seeking more state support to help ensure its survival -- but the has refused extra funds, according to the

A collapse of British Steel would have sparked the loss of up to 5,000 jobs at the group's sprawling steelworks in Scunthorpe,

The government agreed two weeks ago to inject ?100 million ($129 million, 115 million euros) in funding to help British Steel pay its latest carbon emissions bill to the

This week's developments comes amid uncertainty over the future of Tata Steel's main European operations based in the UK after German last week scrapped merger plans with the Indian giant.

A deal was seen as positive for in that employs more than 4,000 staff. Following the merger collapse, said it would slash 6,000 jobs worldwide in a structural shakeup.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 14:31 IST