British Energy says dispute with Polygon resolved

New York, Sept. 30 - British Energy plc said it has resolved the dispute with Polygon Investment Partners LLP.

Polygon will not now support the resolutions put forward for an extraordinary general meeting, British Energy said in a news release. The investment firm now believes "there is no commercial logic" to back the proposals, the company added.

British Energy said it is withdrawing its action against Polygon in the United States and the bondholders have agreed to stop the English litigation with Polygon.

Polygon and Brandes Investment Partners Inc. had put forward resolutions for an Oct. 22 meeting that would terminate the debt restructuring agreed to on Oct. 1, 2003.

Under the terms of the restructuring, the company's creditors would receive the vast majority of the company's equity, leaving the current shareholders with a stake of less than 5%. The resolutions to the meeting would ask the company to consider alternatives that would give them a larger stake in the company.

But the result would be that some of the East Kilbride, Scotland-based nuclear energy company's creditors would try to force the company into bankruptcy to recover what they are owed, British Energy previously warned.

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