British Steel in on the brink of collapse with the potential loss of 25,000 jobs, according to reports.
It is becoming increasingly likely that the firm will fail to secure a government bailout to save it from going bust, it is claimed.
Lenders and the government officials are reportedly getting ready for the company to file for insolvency within the next two days.
More than 4,000 British Steel employees would be made redundant if the company collapses, with up to 20,000 workers in the supply chain potentially losing their jobs too, according to Sky News.
The news outlet reports that the firm has reduced the amount of money it is asking for from the Government from £75million to roughly £30million, with British Steel's major shareholder also pledging to chip in extra funding.
British Steel 'on brink of collapse' with 25,000 jobs at risk
Union leaders are set for talks with the Government over the future of the company, following the news that it faces insolvency.
Unite union said it would be speaking to Business Secretary Greg Clark first thing on Tuesday and urged British Steel owner Greybull to find a solution
A spokesman said: "We would urge Greybull to reach a deal with the Government. Thousands of jobs depend on the outcome."
The Mirror reported days ago that the firm, which employs 4,500 workers, had been locked in crisis talks with the Government and union officials as it pleaded for a £75million emergency loan from Whitehall.
The company was staying tight-lipped as to whether a deal had been reached – but insisted immediate worries had eased.
A British Steel spokeswoman said: “British Steel has the backing of its key stakeholders, including shareholders and lenders, and operations continue as normal.
“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.
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“We are grateful for the support that our stakeholders and the British Government have provided to date.”
It comes days after the company was locked in crisis talks with the Government and union officials as it pleaded for a £75million emergency loan from Whitehall.
MP Nic Dakin, who has campaigned to save jobs at British Steel, previously said the firm’s troubles had “taken everyone by surprise”.
He added: “The sense was that things were progressing in a sensible direction, and this will have alarmed everybody.
“If you’re going to work, you want to have the confidence of being able to go to work tomorrow as well as today.
“I want the Government to find a way to provide the short-term loan to the company that it needs to get over this problem, not of its own making.
“They need to keep working hard with Greybull and other stakeholders to find a solution as quickly as possible.”
