Administration threat grows at British Energy
The threat of administration appears to be growing for struggling nuclear power generator British Energy, according to reports.
An government insider has been quoted in the FT as saying, administration, originally seen as a measure of last resort, was now ‘very much an option’.
The newspaper also said analysis of the ‘figures’ suggested it would cost the taxpayer less to put the company into administration, then to keep it running with state support.
British Energy has secured a £410m loan facility from the government, but must outline a financial restructuring plan by 27 September when the loan arrangement lapses.
A spokesperson for British Energy declined to comment.