British Steel - is it a wind up?

Abstract

Key Points  The recent compulsory liquidation of British Steel raises a number of fundamental questions about the nature of compulsory liquidation.  Is it possible for compulsory liquidation to be used in a manner similar to administration to rescue (part of) a company’s undertaking with the costs of the process being picked up by the taxpayer rather than met by secured creditors?  In this article we consider the reasons why the court ordered the liquidation of British Steel and more broadly consider the nature of compulsory liquidation and on whose behalf and for what purposes it may be ordered.