Unions have attacked British Steel's former owner Greybull as the turnaround investor tries to cherry-pick parts of the business that collapsed into administration under its management.

Greybull bought the firm from Tata for just £1 three years ago, pledging to revive the Scunthorpe-based operation’s fortunes.

However, British Steel was taken over by the Official Receiver a fortnight ago and placed into compulsory liquidation after running into a financing crisis, putting 4,500 jobs in jeopardy and a further 20,000 in the supply chain at risk.

Rather than a straight liquidation, the Receiver is being bankrolled by the Government to operate British Steel in the hope of finding a buyer. It is more likely to be purchased as a going concern, rather than as mothballed assets.

However, Greybull is now attempting to buy British Steel’s Hayange plant in France and its FN Steel mill in the Netherlands in a move first reported by the Financial Times.

These plants are not in liquidation but British Steel’s shares in them are controlled by the Receiver.