British Energy
British Energy plc, a troubled power-generation concern, began the subject of intense negotiations, sponsored by the government of the United Kingdom, in 2003. Parties to the talks included bondholders, significant but unsecured creditors, power purchase agreement counterparties, and a group of secured creditors known as the Eggborough banks, because they provided financing for the purchase of the Eggborough coal-fired power plant from National Power in 2000.
The plan that resulted from these talks would nearly eliminate any equity interest by existing stockholders.
A hedge fund, Polygon Investment Partners LLP announced in July 2004 that it has an alternative plan, and it has since sought to block the government?s negotiations. It believes that the proposed restructuring violates the rights of shareholders under the law of the European Union and under the UK Human Rights Act of 1998.
