Under pressure

Troubled nuclear power firm British Energy came under more pressure yesterday when Polygon Investments joined other shareholders calling for an extraordinary general meeting (EGM) to derail management attempts at a restructuring deal.

British Energy fell into difficulties two years ago when wholesale power prices plunged, leaving it £1.3bn in debt.

A rescue package, put together last year by the generator and backed by the government, would leave shareholders with only 2.5% of the company’s equity. Creditors would acquire the bulk of the group under a debt-for-equity swap.

Polygon, a 5.6% shareholder, wants to see shareholders given 30% of the company and, in the light of improving economics at British Energy, an EGM set to discuss alternative rescue plans.

A spokesperson from Polygon said: “Surging power prices now mean this is a solid business and nuclear power is looking increasingly attractive. British Energy is very far from being on its knees.”