£400m to be pumped into Corus

Jun 1 2009 by Iain Laing, The Journal

THE Indian company which owns Anglo-Dutch steel firm Corus company has pledged to pump £400m into the company to pay off debt after being given help with its loans.

Tata Steel UK has won approval from banks to ease conditions on £3.7bn it borrowed to buy Corus in 2007. It is a welcome boost for a company which is poised to mothball its Teesside Cast Products plant in Redcar and cut the jobs of its 2,000 staff after a group of buyers walked away from a deal guaranteeing its sales for the next five years.

Corus CEO Kirby Adams said the “overwhelmingly positive” response from the lenders is a mark of their faith in the company’s business, even as Corus explores options for Teesside Cast Products. Banks have agreed to waive the loan’s financial covenants in mid-May for a year.