government support: About a dozen firms are thought to have made tentative approaches and the deadline could be extended if any ask for more time to draft a takeover plan, according to The Guardian. But the Guardian understands that Liberty House, previously considered among the most likely to buy British Steel, has cooled its interest after failing to secure government support, including loan guarantees to fund investment. The government's Insolvency Service, which is funding British Steel's operations while seeking a buyer, has given bidders until 30 June to make an offer for the company, whose financial failure last month put 4,500 jobs at risk. Liberty wants to convert Scunthorpe's blast furnaces, which make steel from scratch, into more cost-effective electric arc furnaces that can use recycled steel to make similar products. Government officials are understood to be unwilling to provide loan guarantees or help retrain staff who might lose their jobs, although such measures are thought to fall within state aid rules. But the plan would require a major outlay, which according to a person with knowledge of the situation would be in the low hundreds of millions . The source said there was a lack of enthusiasm in government for the steps that would be required to convert the steelworks.
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