To ask Her Majesty's Government, further to the Written Answer by Lord Henley on 6
June (HL15957), whether the placement of British Steel in receivership on 25 May (1)
disqualifies that company from receiving, or (2) places it at risk of not receiving,
2019 carbon credits; if so, what are the implications for the £120 million loan they
made to British Steel; and whether they will now answer the original question put,
namely, whether that loan was guaranteed by Greybull Capital or related parties.
<p>The Deed of Forfeiture bridge facility agreed between Government and British Steel
Limited provides legal protections to give Government control of 2019 EU ETS allowances,
even under the scenario of insolvency.</p><p> </p><p>Under the Deed of Forfeiture
agreed between the company and British Steel Limited, the company’s 2019 allowances
will be assigned to the Government once issued, and the proceeds from selling these
is expected to cover the costs of purchasing the allowances. Greybull are not party
to this Deed of Forfeiture, and as a result of the liquidation, day-to-day control
has passed to the liquidator of British Steel Limited.</p><p> </p><p>The terms of
the commercial agreement between Government and British Steel are set out in letters
from the Permanent Secretary of the Department for Business, Energy and Industrial
Strategy to the Chair of the Public Accounts Committee and the Comptroller & Auditor
General, copies of which have been placed in the Libraries of both Houses.</p>
