Government ministers are drawing up plans in an effort to prevent British Steel from collapse, according to Sky News reports this could lead to thousands of job losses.
The steel company is seeking another loan of £75m to keep the company afloat just weeks after they were given a £100m of funding to pay the EU a carbon bill.
It has been reported that insolvency experts are on standby to deal with the steel plant in Scunthorpe collapsing, should they not be able to secure the funding needed.
If the company does enter administration the receivers would most likely attempt to run the company as a going concern, whilst looking for the required capital.
Ross Murdoch, GMB national officer said, “This Government has a track record of sitting on its hands while UK manufacturing collapses round its ears.
“Now is the time to take action, minsters must come out and guarantee the loan required to safeguard British Steel.
“Thousands of UK jobs are on the line, not to mention the entire future of our proud steel industry.”
The company employs 4,500 and up to as many as 20,000 people within the supply chain.