Business

Turkey’s military pension fund in talks to rescue British Steel

Hope for more than 4,000 workers at firm, which fell into insolvency three months ago

Ataer Holding now has two months to conduct due diligence and complete the paperwork. Photograph: Getty

Fri Aug 16 2019 - 19:41

A rescue deal for British Steel is in sight after a Turkish investment group owned by the country's military pension fund reached a provisional agreement for a takeover of the stricken company.

Under the terms of the agreement announced on Friday, Ataer Holding was named as the preferred bidder for Britain's second-largest steelmaker. It now has two months to conduct due diligence and complete the paperwork.

The development offers hope for more than 4,000 workers at British Steel, who have been in limbo since the company fell into insolvency three months ago after the government rejected a request for a state bailout from its owner, the private investment fund Greybull Capital.

Operations have continued under the official receiver, a court-appointed civil servant whose duty is to find the best outcome for creditors, with a taxpayer-backed indemnity ensuring that wages and bills are paid.

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In a statement the official receiver said that following discussions with several potential purchasers, “I have now received an acceptable offer from Ataer Holdings AS for the purchase of the whole business.”

“I will be looking to conclude this process in the coming weeks, during which time British Steel continues to trade and supply its customers as normal.” – Copyright The Financial Times Limited 2019

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