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It is feared thousands of jobs could be lose at its plant in Scunthorpe should the contingency plans, reported by Sky News, be put into place. The company is currently in the midst of a funding crisis and is seeking a further loan of £75million from the Government. Should the British steel giant fail to raise the funds needed to keep the group going, sources claim part of the company could fall into administration as soon as Wednesday. British Steel has been contacted for comment by Express.co.uk.

The company is understood to have secured a financial support loan on commercial terms with Whitehall as part of a broader package announced earlier this month. However, the second part of the deal was supposed to have been finalised by the end of last week. The reports of looming administration come after British Steel was granted a £120million funding package from Business secretary Greg Clark. The taxpayer handout was made to help British Steel pay a carbon emissions bill from Brussels.

British Steel could fall into administration as soon as Wednesday, it has been claimed

KPMG, the big four accountancy firm, is understood to have advising the Government on British Steel. British Steel has around 4,500 people working directly for the company with as many as 20,000‎ more in its supply chain. There are more than 4,000 workers at the Scunthorpe site alone. British Steel has been squeezed in recent months by ongoing Brexit uncertainty weighing on the pound and repercussions of the US-China trade war. Around 10 percent of its 5,000-strong workforce were sacked last autumn in an attempt to "streamline" its operations.

British Steel could be on the verge of collapse