Turkish military pension fund to rescue British Steel
The Turkish Armed Forces Assistance Fund, the state army pension fund for Turkey, has reached a deal to rescue troubled firm British Steel from liquidation.
The Fund, known as Ataer Oyak, plans to take control of British Steel by the end of 2019 and take it out of insolvency.
Oyak already has a near 50 per cent stake in Turkey’s largest steel company, Erdemir.
British Steel employs 5,000 people, including 3,000 at its site in Scunthorpe and a further 800 in nearby Teeside.
After being placed into liquidation in May after talks over a government bailout broke down with British Steel's owner Greybull, the firm was placed into receivership.
The Official Receiver then placed it up for sale with Oyak’s investment branch named the preferred bidder.
Both parties are now in the stages of finalising the purchase, with Oyak’s accountants taking over the books.
The Official Receiver said: "Following discussions with a number of potential purchasers for the British Steel group over the past few weeks, I am pleased to say I have now received an acceptable offer from Ataer [Oyak].
"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.
"I would like to thank all employees, suppliers and customers for their continued support which has been essential to get to this point.”