Network Rail makes indicative offer for some British Steel assets
2019-07-02 14:43:47 [Print]
Britain's Network Rail said last Sunday it has made an indicative offer for some "railway critical" assets of British Steel, the country's second-largest steel producer which went into liquidation last month.
State-owned Network Rail is a British Steel customer, buying about 100,000 tonnes of rails a year from the company, which was put into compulsory liquidation on May 22 after Greybull Capital, which bought it from Tata Steel three years ago, failed to secure extra funding.
The company has been open for bids from potential buyers until an extended deadline of June 30, and the office handling British Steel's liquidation said in May that around 80 companies had been given access to the books.
"We have made an indicative offer for some railway critical assets although our overwhelming preference is that a purchaser for the entire business is found," a spokesperson for Network Rail said.
The railway infrastructure operator is working with British Steel's liquidator, the spokesperson said, adding that it was very clear that Network Rail's offer would not undermine its preference of British Steel being sold in its entirety.
Banking and industry sources disclosed that the company has attracted interest from up to nine possible buyers, but far fewer firm bids were expected by an extended June 30 deadline.
Sources previously revealed that none of the potential buyers would be willing to take on the whole company, even for a nominal sum, due to the need for capital expenditure to make it profitable after years of underinvestment.
State-owned Network Rail is a British Steel customer, buying about 100,000 tonnes of rails a year from the company, which was put into compulsory liquidation on May 22 after Greybull Capital, which bought it from Tata Steel three years ago, failed to secure extra funding.
The company has been open for bids from potential buyers until an extended deadline of June 30, and the office handling British Steel's liquidation said in May that around 80 companies had been given access to the books.
"We have made an indicative offer for some railway critical assets although our overwhelming preference is that a purchaser for the entire business is found," a spokesperson for Network Rail said.
The railway infrastructure operator is working with British Steel's liquidator, the spokesperson said, adding that it was very clear that Network Rail's offer would not undermine its preference of British Steel being sold in its entirety.
Banking and industry sources disclosed that the company has attracted interest from up to nine possible buyers, but far fewer firm bids were expected by an extended June 30 deadline.
Sources previously revealed that none of the potential buyers would be willing to take on the whole company, even for a nominal sum, due to the need for capital expenditure to make it profitable after years of underinvestment.
