Government bail-out rescues British Energy
The threat of administration hanging over nuclear generator British Energy has receded following a government bail-out.
Financial guarantees of up to £410m have been offered while talks on longer-term restructuring get underway.
But British Energy warned: ‘There can be no certainty that this will preserve value for investors.’
The company told ministers last week it needed a cash injection of at least £280m to enable it to refinance borrowings, £100m more than the company had previously said it needed.
Reports suggest chief executive Robin Jeffrey was not fully informed about the generator’s financial position last month when he told analysts the company was not facing a crisis.
The Financial Services Authority is investigating whether the company has been sufficiently open about its problems, focusing on reassurances given by Jeffrey and Keith Lough, finance director, during an 14 August telephone conference.