Cash crisis shunts Metronet closer to administration
London Underground contractor in crisis after emergency funding is denied by arbiter for public private partnerships
The tube operator Metronet is facing administration due to a deepening cash
crisis.
The main private contractor on the London Underground has been seeking
significant injection of cash to survive, but failed to find anyone to foot the
bill for its estimated £750m overspend.
Metronet asked the arbiter for public private partnerships Chris Bolt for
£400m, but he decided to award just £121m – a fraction of what the firm said it
required to continue operating for the next 12 months.
According to BBC business editor Robert Peston, ‘Metronet has been a disaster
for its owners, WS Atkins, EDF, Balfour Beatty, Thames Water and Bombardier.’