Redcar goes into liquidation while government gives £80 million aid package to workers

Written by companyrescuelondonadmin 3 April 2017

Today, it was announced the government is giving £80 million to the thousands of workers affected by the closure of the SSI-owned Redcar steel plant.  Meanwhile news reports show SSI has applied to put the company into liquidation, which has debts of more than £800 million.  It has been touch and go over the last few weeks for the steel business – reports last week revealed the company was on the brink of administration and had filed a notice of intention to appoint an administrator.

Failing to secure extra funding or find a buyer in time, operations shut down while unions, MPs and workers tried to save the plant, calling on the government.  1,700 workers were made redundant on Monday, however support has continued to be sought for the workers. It’s bittersweet news today that the government has announced their plans to give an £80 million aid package. 

Business Secretary, Sajid Javid, said in a statement “This is an extremely difficult time for the workforce at SSI and the local community. The package we are announcing today will provide important support to workers and the local economy. Across government we will continue to focus on providing assistance where we can.”

According to reports, an Official Receiver of the High Court will be appointed to liquidate the company. David Kelly, Toby Underwood and Ian Green from PwC have been appointed as managers to work with the Official Receiver. To ensure the business assets are protected, the coke ovens will stay in operation until further notice. 

Update 12/10/2015: No buyer has been found, therefore the coke ovens at the SSI Redcar plant will close down. Ken Beasley, the Official Receiver, stated the plant has been running on taxpayers’ money and with no prospective buyer in sight, there is no other option but to stop all operations.