Post by Deleted on Jul 16, 2007 9:22:24 GMT
Metronet is facing administration
London's underground system is one of the world's busiest
Tube maintenance company Metronet is facing the threat of administration unless there is a last-minute rescue.
Metronet is part of a public-private partnership (PPP), which use private sector money to fund public projects.
It had asked London Underground for £551m to cover extra costs as it upgraded parts of the Tube system but was awarded £121m by the PPP regulator.
Metronet said that its board would be meeting before making a statement either late on Monday or on Tuesday.
'Intervention'
"Metronet has been a disaster for its owners, WS Atkins, EDF, Balfour Beatty, Thames Water and Bombardier," the BBC's business editor Robert Peston said.
"Unless there's a last minute intervention by the Treasury this morning, Metronet will go into administration today," he added.
"The losses for Metronet's lenders may run to hundreds of millions of pounds."
Metronet is responsible for maintaining London's Bakerloo, Central, Victoria, District, Circle and Metropolitan tube lines.
The company had planned to invest £17bn over the next 30 years under a PPP scheme.
However it has estimated there will be a £1.2bn overspend after seven-and-a-half years.
The company has been embroiled in a battle over who should foot the bill.
London's underground system is one of the world's busiest
Tube maintenance company Metronet is facing the threat of administration unless there is a last-minute rescue.
Metronet is part of a public-private partnership (PPP), which use private sector money to fund public projects.
It had asked London Underground for £551m to cover extra costs as it upgraded parts of the Tube system but was awarded £121m by the PPP regulator.
Metronet said that its board would be meeting before making a statement either late on Monday or on Tuesday.
'Intervention'
"Metronet has been a disaster for its owners, WS Atkins, EDF, Balfour Beatty, Thames Water and Bombardier," the BBC's business editor Robert Peston said.
"Unless there's a last minute intervention by the Treasury this morning, Metronet will go into administration today," he added.
"The losses for Metronet's lenders may run to hundreds of millions of pounds."
Metronet is responsible for maintaining London's Bakerloo, Central, Victoria, District, Circle and Metropolitan tube lines.
The company had planned to invest £17bn over the next 30 years under a PPP scheme.
However it has estimated there will be a £1.2bn overspend after seven-and-a-half years.
The company has been embroiled in a battle over who should foot the bill.
