Liberty Steel won't receive £170m bailout
The government has rejected a request for £170m in financial support for Liberty Steel.
The firm's founder Sanjeev Gupta sent a letter last week asking for help to pay day-to-day operating expenses and absorb recent losses.
Liberty's owner GFG employs 5,000 staff at its 12 UK sites, which include Rotherham, Motherwell and Newport.
GFG's key financial backer, Greensill Capital, filed for insolvency earlier this month.
Government sources told the BBC last week they had concerns about the "opaque" nature of Mr Gupta's empire, which employs 35,000 worldwide.
Any assistance was more likely to come following an administration process, the sources indicated, to support UK jobs as opposed to the corporate entity that owns it.
GFG, a holding company for Mr Gupta's assets, was the biggest recipient of finance from Greensill.