A management buyout of Tata’s UK steel operations could use a crowd funding model to help gather the financial firepower needed to save the business from closure.
Well, I’d like to see them try, for sure. They need a few hundred million at minimum…..
Staff at the plant were briefed on Tuesday about the scheme, which could involve employees being asked to contribute up to £10,000 to help fund a deal.
Ah, they don’t actually mean crowdfunding at all. they mean plain old fashioned worker capitalism. Not a good model: losing your job and your savings at the same time just isn’t quite the point of having savings.
Mr Phillips said to be workable the buyout would need the Government to invest alongside – and it is not certain what form this would take – but added that funding could come from a wide base.
“It could be open to the 130,000 members of the pension scheme,
Government (ie, taxpayers) plus the already in the red pension scheme? These might be serious political manouevres but they’re not serious economic ones, are they?
The £485m deficit the Tata pension scheme has is seen as one of the major stumbling blocks to any deal, and involving its members could help clear away potential hurdles.
Because investing in a loss making business does such wonders for the returns of a pension scheme….