British Steel could be broken up or its sale abandoned if a buyer doesn’t come forward soon, according to reports.
It is a further blow to the 25,000 jobs that depend on the company – which was plunged into liquidation last Wednesday.
Government insiders warned that a campaign to find a buyer may be scrapped by the summer.
Unions and British Steel want the Government to step in and temporarily nationalise the company.
In a letter to Business Secretary Greg Clark, Unite said it expected Government guarantees to pay wages until a buyer is found will stay in place “for as long as it takes”.
Mr Clark has proposed the Government act as a “cornerstone investor”.
It is understood that no formal approaches have been made to buy the firm, owned by Greybull Capital.
