The trading of Railtrack Group shares will not resume on the London Stock Exchange today (Monday), further delaying its subsidiary, Railtrack PLC's, exit from administration.
Railtrack PLC was expected to come out of administration early this week. But yesterday it emerged the deal had been held up by sticking points in Railtrack Group’s sell-off of the Channel Tunnel Rail Link, part of the rescue package.
A spokesman from Network Rail confirmed the companies were ‘still in negotiations,’ but could not say when the talks were expected to reach a conclusion.
In a statement, Railtrack Group confirmed the deal had been delayed saying: ‘Certain issues are still outstanding, some of which could have prevented cash being returned to shareholders within an acceptable timescale.
‘This has caused the Board to delay signing the contracts for the sale of Railtrack PLC and the Group’s interests in the Channel Tunnel Rail Link. All parties are confident that these issues can be satisfactorily concluded shortly.’
Last week, it was widely tipped that Railtrack would come out of administration today (Monday).