British energy row resolved

British Energy said Polygon had decided not to support resolutions at an extraordinary general meeting next month which the company had claimed would force it into administration, Reuters reported.

The company said it had withdrawn its action against Polygon in the US and that steps had also been taken to halt English litigation relating to it.

No changes to the restructuring deal were made, British Energy said, claiming that Polygon had simply concluded there was ?no commercial logic? for its challenge to the plan.

Rebel shareholders need to win 75% of the vote at the EGM on 22 October to block the restructuring, but face the added problem that the company plans to de-list the day before, a move that could render the outcome mute.

Polygon owns around 6% of equity in British Energy while Brandes, which has also been opposing the deal, owns 7%. Shareholder are angry because bondholders would get 97.5% of the company if the restructuring goes ahead.

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