British Energy restructuring gains support
British Energy moved a step closer to a debt restructuring today after shareholders and creditors supported the terms of the overhaul.
The nuclear power group will now seek court approval as part of the final stages of a complex process expected to be completed in mid-January.
The shake-up, which was drawn up in October 2003 after low wholesale prices sent the company deep into the red, involves banks and bondholders agreeing to write off debts in return for control of the group.
Shareholders, who backed the proposals at a meeting in Edinburgh today, will be left with 2.5% of a newly listed company, with the opportunity to subscribe for warrants covering another 5%.
Without the restructuring, British Energy said it would face insolvency proceedings and that there was unlikely to be any return to shareholders.
