British Energy bondholders to vote Dec. 22 on restructuring

By Jeff Pines

Washington, Nov. 30 - British Energy Ltd. bondholders will meet Dec. 22 to vote on a reorganization plan that will give them 154 million pounds of new bonds and at least a 51% stake in the new company to be formed to take over British Energy's assets.

The East Kilbride, Scotland-based nuclear energy company with the agreement of its creditors extended the restructuring deadline to March 31, 2005. There also is the possibility of extending the restructuring deadline to Oct. 31, 2005, the company said in a Tuesday filing with the Securities and Exchange Commission.

Shareholders also will vote on Dec. 22, but their consent is not required for a restructuring, the company said. Existing shareholders may get up to 5% of the new company through shares and warrants.

The company moved for an extension after it had troubles restarting the Hartlepool and Heysham 1 power plants.

The British secretary of state also approved an extension to British Energy's agreement with the government to April 30, 2005.

Citigroup Global Markets Ltd. and HSBC Bank are advising British Energy.

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