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Last Updated: Friday, 1 October, 2004, 08:19 GMT 09:19 UK
Higher costs hit British Energy
Power station control room
British Energy produces about a fifth of the UK's electricity
Troubled nuclear power company British Energy has reported a first-quarter loss but said it is making progress on its debt restructuring plans.

Higher operating costs and lower-than-expected output led to a 115m ($207m) loss for the three months to 30 June.

To avoid going into administration, British Energy is planning a debt-for-equity swap which will see its creditors take control of the firm.

British Energy nearly collapsed in 2002 after a slump in wholesale power prices

"Progress has been made towards the completion of the proposed restructuring, but it still remains subject to a number of significant uncertainties and important conditions," said British Energy in a statement.

On Thursday, a key shareholder in British Energy, investment company Polygon, dropped its opposition to the 5bn restructuring plan.

Polygon was unhappy at the terms of the deal, which will leave existing shareholders with just 2.5% of the company.

But Polygon decided there was no "commercial logic" in pursuing its complaint.

As part of the restructuring move, British Energy's shares will be delisted from the London stock market later this month.

Lift for British Energy debt plan
30 Sep 04  |  Business
British Energy seeks to delist
24 Sep 04  |  Business
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03 Sep 04  |  Business
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27 Aug 04  |  Scotland
British Energy warnings 'ignored'
06 Feb 04  |  Business

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