British Energy 'will meet deadline'

BRITISH Energy, the nuclear generator, claimed it is on schedule to complete a controversial financial restructuring in time for a deadline of 31 January 2005.

In a statement ahead of an extraordinary general meeting at which shareholders are expected to back the restructuring, the company said it may nonetheless be forced to extend that deadline.

'No decision has been taken at this time,' it said.

Faced with bankruptcy, British Energy, which produces 20% of Britain's electricity, was forced to strike a deal with creditors under which they will take control of around 97.5% of its equity.

Under the terms of that agreement, if the company fails to complete the restructuring by next January the deal could be scrapped.

Shareholders, angered by what they claimed were harsh terms, had threatened to use that loophole to their advantage and force the company to renegotiate terms.

But leading investor Polygon Investment Partners LLP last month abandoned its fight to scupper the restructuring.