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Under pressure

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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.”

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