Fresh fears for 5k jobs at British Steel

THOUSANDS of jobs at British Steel are in the balance after a rescue deal by Turkey’s military pension fund was thrown into doubt.

Ataer Holding, an arm of pension fund Oyak, has had exclusive talks with the Official Receiver over a formal bid for the steel maker.

That period has ended and the Government has restarted talks with other potential buyers of British Steel, which employs 5,000 people and supports another 20,000 jobs in the supply chain.

Reports have claimed a rescue is in danger of failing because some British Steel suppliers were refusing to accept price cuts.

The firm was put into compulsory liquidation in May when talks between its former private equity owner, Greybull Capital, and the Government fell apart.

The company, which owns the Scunthorpe steelworks and other sites on Teesside, has since been kept afloat by taxpayers.

Ataer was picked from several bidders for talks but Turkey’s invasion of north Syria on October 9 has complicated plans to sell it to a fund connected to its military.

The Official Receiver said: ‘Discussions with other parties who have expressed continued and renewed interest in acquiring the whole business will now be possible. Diligence team members from these parties are expected to visit the company’s sites.’

Tees Valley mayor Ben Houchen said: ‘We must do all we can to protect British Steel and protect local jobs. It remains protected by a Treasury-backed indemnity, workers are still being paid and the order book remains strong.’