The government has until tomorrow to determine if it will grant the energy company the loan, approved by the European Commission, with the condition that the debt be repaid within a year.
According to the Financial Times, the Commission also raised the ceiling for any further aid to £1.1bn yesterday.
The Commission said: ‘It is necessary for nuclear safety reasons to keep British Energy alive until a permanent solution is found.’
An estimated £899m is required to keep the embattled energy giant afloat and allow KPMG, rumoured to be helping British Energy, to negotiate a restructuring. A further £276m is thought to be needed to cover ‘unspecified contingents’.
British Energy, which supplies the nation with the majority of its electricity, has succumbed to the 45% drop in energy prices due to over-capacity and fierce competition in the sector.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children