© Provided by City AM The owner of Liberty Steel is reportedly in talks about a £200m loan facility from California-based investment firm White Oak Global Advisors.
The BBC first reported the arrangement is in its early stages, however a skeleton agreement has been drafted.
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Any agreement would need to be approved owner Gupta Family Group's creditors which include Credit Suisse and Tata Steel.
The UK's third largest steelmaker was on the brink of collapse weeks ago when its main financer Greensill Capital went bust.
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Sources told the BBC that the cash injection, if it were agreed, would increase the changes of the steelmaker's creditors recovering a greater amount of the cash owed to them as it would potentially allow Liberty to return to full production and therefore benefit from higher steel prices.
White Oak and Gupta Family Group declined to give comment to the BBC.
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