British Steel: Company Liquidations
The question
To ask the Secretary of State for Business and Trade, whether his Department has made an assessment of the potential impact of British Steel entering liquidation during or after the period of special measures under the Steel Industry (Special Measures) Act 2025 on creditors; and what mechanisms are available for them to recover outstanding debts.
Answered by Sarah Jones
It would be a breach of the Steel Industry (Special Measures) Act for British Steel to be put into liquidation while the special measures are in place. Prior to the Act becoming law, the Government undertook assessments of the potential cost to the public purse should British Steel enter insolvency. These assessments would be updated in the unlikely event that liquidation became a serious prospect.
Creditors of British Steel whose credit predates the special measures are protected by the security interests they obtained at the time their credit was advanced. Any parties wishing to extend credit to British Steel during the currency of the special measures will need to consider the most suitable arrangements upon which they would be willing to do so. British Steel management and DBT can discuss any such proposals as the need arises.
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