Tata Steel in the United Kingdom (UK) is on the verge of securing an emergency loan from the British government under its ‘Project Birch’ scheme, according to media reports.

 

‘Project Birch’ was developed during the COVID-19 to protect struggling firms that are a backbone of the UK’s economic status. In order to access funding arrangements, companies must exhaust all means of raising money to be eligible, including British government’s Covid-19 assistance schemes.
 
The state loan for Tata Steel’s UK operations that includes the complex at Port Talbot in South Wales is being considered the first major transaction under ‘Project Birch’.
 
According to a news report, if Tata Steel secures the deal under Project Birch, it could save the jobs of 8,000 workforce in the UK.
 
The plan includes a mechanism under which the debt to be provided to Tata in the rescue package could be converted into equity under certain circumstances.

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