British Energy Share Discussion Threads

[bgyered] 30/11/2004 21:40

At 695 pages the BGY deforestation document cost us a mere £14,964 per page in consultancy and advisory fees (£104M at the last count). I'm keeping mine as a family heirloom (to clobber any offspring stupid enough to invest in any HMG regulated industry). My wife's is already in the Waitrose recycling bin.

[bgyered] 30/11/2004 21:33

Two interesting points from this article:

- extending the restructuring requires approval in the courts, who must be satisfied that restructuring scheme is well-supported - so there's another opportunity for a shareholder protest at least

- the BGY Board wheeze to syphon off the assets to a new company without shareholders' approval and re-list now carries the health warning that shareholders "might" get nothing. It used to be "will" get nothing.

As the bonds are now trading at 235% premium, compared to 170% a couple of months ago, the share price must be on the up too - is that so?

_______________________________________________________________
British Energy to delay rescue
Tue 30 November, 2004 13:09

Nuclear power firm British Energy is seeking creditor approval to push a rescue deadline to March 2005 from January as it prepares to battle potential objections to its proposed 1 billion pound debt-for-equity swap.

The country's biggest power producer is groaning underneath total liabilities of 5.8 billion pounds at August 30, against assets of 2.6 billion, and wants to wipe 1 billion pounds of bond and bank debt off its balance sheet through the debt-for-equity swap.

The company has got European Commission approval and agreement with major stakeholders to meet a January 31 deadline to complete the rescue, but it wants to extend the deadline to March 31.

British Energy still needs court approval, which requires an open hearing that would give shareholders an opportunity to lodge objections.

"We plan to implement the restructuring by end-January, but want an extension put in place in case any unforeseen circumstances arise," a BE spokesman said on Tuesday.

The company must have court approval on January 14, and the extension would allow for a broader debate in court after January 14, Chief Executive Mike Alexander said.

"The process is an open process," he said. "The court decides whether the (rescue) scheme is well supported."

British Energy has already fought off minority shareholder Polygon, which claimed that the restructuring was biased in favour of bondholders over shareholders. The company de-listed its shares last month to fend off Polygon.

British Energy bonds traded at 235 percent of face value on Tuesday, one debt trader said.

Alexander told a conference call he expected to pay adviser fees of 104 million pounds if the company completed the rescue by January.

INSOLVENCY PROCEEDINGS

British Energy has already obtained approval for extending the deadline from the UK government -- which underwrites the firm's 5 billion pounds in nuclear liabilities -- and is hoping to get approval from creditors by the end of the week, Alexander said.

The power generator, which provides about a fifth of the UK's electricity, warned on Tuesday that if it did not get approval for the extension and did not complete its restructuring by January 31, then it would have to commence insolvency proceedings.

The firm said that shareholders and bondholders would get a vote on the rescue plan on December 22. It is proposing that creditors get 97.5 percent of the new shares and shareholders get the rest plus warrants for a further 5 percent.

If shareholders do not approve the plan, the company is proposing a so-called disposal route. It would transfer all its assets and liabilities into a new company, which would then re-list. Under that scenario shareholders might not get anything.

Alexander said the firm would consider a share dividend in March 2007 and was planning 250 million pounds a year on plant investment. British Energy nearly collapsed two years ago after weak power prices forced its high-cost operations towards insolvency.

[bgyered] 30/11/2004 21:11

Quite ironic really - if BGY hadn't delisted, thereby invalidating ISA/PEP holdings, causing tens of thousands of small shareholders to receive certificates - they'd wouldn't have had to pay a fortune to send them all the voting pack. You'd wonder if they have any feet left to shoot at wouldn't you?

[apreading] 30/11/2004 17:16

From BBC

Struggling nuclear power firm British Energy has won an extension to a deadline for a restructuring deal aimed at ensuring its financial future.
Creditors have agreed to move the deadline for the deal back to 31 March.

However, British Energy said the debt-for-equity swap - which will cut the stake of existing shareholders to 2.5% - should be completed in January.

[pc4900074200] 30/11/2004 16:48

Got my tree.

Now for some heavy reading.

pc

[mauts daughter] 30/11/2004 10:35

probably a penny.

[skintvestor] 30/11/2004 10:06

Will the shares be worth anything like what they were at delisting????

[martin036] 30/11/2004 10:00

RNS out re restructuring, not good news as far as relisting is concerned.

[pgaffney] 30/11/2004 09:53

Anyone get a couple of trees through the letterbox today?
Must cost BE a fortune to send this lot out. Well heres to the next few days trying to decipher it all!

regards

PG

[mauts daughter] 30/11/2004 09:52

crikey, i got the bumph today on the re-organisation- nearly put a hole in the floor dropping from the letter box, what a monster.

[bgyered] 26/11/2004 13:20

Labour limbering up for a nuclear about-turn as predicted:

Labour to look again at nuclear power: Support for new plants may follow election
November 25, 2004 6:51pm
Europe Intelligence Wire


Britain's nuclear lobby yesterday expressed confidence about the future - buoyed by the country's growing need for home-grown energy and a need to curb greenhouse gases.

Top business executives met politicians, union officials and consultants in London to look at ways of convincing a sceptical public it should support a new generation of atomic plants.

Martin O'Neill MP, chairman of the trade and industry select committee, expressed optimism a new Labour government would take another hard look at nuclear "within 12 months" of winning an election.

"Within two years we could have a situation where a number of building blocks are in place," he said, making clear that controversial issues such as disposal of waste "can be addressed".

But he believed a new consortium of companies rather than the country's main nuclear generator, British Energy, would be the most likely vehicle for building new capacity.

Mike Alexander, the chief executive of BE, insisted his restructured company had a good future but admitted it still needed to convince itself and the public it was a truly competent operator.

"We need to pull our socks up," said Mr Alexander who joined last year from gas and electricity group, Centrica.

Professor James Lovelock, a long-time environmentalist who shocked some of his green colleagues this year by arguing nuclear power was a vital tool to tackle global warming, was back on the offensive. At the conference, organised by white collar union Prospect and titled Keeping the Nuclear Option Open- What Will It Take?, Prof Lovelock said green opposition to nuclear was completely misguided.

"Now that we have made the earth sick, it will not be cured by alternative green remedies like wind turbines and bio fuels alone. This is why I recommend instead the appropriate medicine of nuclear energy."

Prof Lovelock, a fellow of Oxford University, argued that renewable energy was "ruinously expensive" and gas was "the most dangerous" energy source of all.

"During the next 20 to 50 years even a 2% leak of the natural gas from the production sites to the power stations makes it as bad as burning coal or oil. There seems to be no answer other than draconian energy saving and the widespread use of nuclear power."

The government energy white paper published last year kept mention of nuclear down to a minimum but said the issue of whether to proceed with a new generation of atomic plants would be revisited. Nothing is expected to happen before a general election.

Mr Alexander said new stations would need the go-ahead by 2007 given the long lead time to build them and the fact that BE's plants are rapidly ageing.

Only three of BE's eight stations could remain in action by 2015 unless they are given life extensions.

Chris Lambert, a director with the lobby group Westminster Energy Policy Forum, said it was planning a series of seminars and conferences on nuclear issues over the next 12 months.

Six City firms - including lawyers, insurers and credit agencies - are expected to fund the exercise. Mr Lambert was unwilling to say who they were ahead of details being finalised.

[cimbom] 19/11/2004 01:55

Found this article in todays Times Online.

November 19, 2004

Power plant shutdowns hit British Energy rescue plan
By Angela Jameson



BRITISH ENERGY, the troubled nuclear group, has hit another hitch in its mammoth restructuring after two of its power plants were hit by unexpected shutdowns.
The nuclear group is seeking to extend its restructuring agreement with bondholders, banks, British Nuclear Fuels and the Government, in case it misses a January 31 deadline.



As a result the debt for equity swap that will hand ownership of the group to the company's creditors could be postponed, potentially leading to a delay in the return of the shares to the stock market.

The nuclear group gave warning yesterday that it may not be able to meet its financial obligations and that insolvency remains a possibility while the restructuring is uncompleted.

Shareholders, who have made big losses on their investment in the privatised nuclear group, were expecting to see the company relisted on the Stock Exchange in January, ahead of the restructuring completion.

British Energy shares were delisted last month to prevent rebel shareholders from derailing the restructuring plan. Shareholders will get only 2.5 per cent of the company under the deal. They had argued that rising wholesale electricity prices meant that they should have a larger share of the company that emerges from restructuring.

British Energy said yesterday that two units at Heysham and Hartlepool remained shut down after a problem in October. The power plants are not expected to be started before mid-December.

"In the light of the delay to the restart of Hartlepool and Heysham 1, the company has decided it is prudent to seek an extension to the present restructuring long stop date of January 31, 2005," the company said.

An extension requires the approval of bondholders and other creditors, including BNFL, as well as the Secretary of State. The creditors are expected to give their approval shortly.

British Energy said it has reduced its target for nuclear output for the financial year 2004-05 because of the plant shutdowns

[kordeiv] 18/11/2004 20:05

LONDON (AFX) - British Energy PLC said it has reduced its target for nuclear output for the financial year 2004/2005 to 59.5 terrawatt hours (TWh) due to plant shutdowns.
The company said both units at each of Heysham 1 and Hartlepool remain shutdown and are not expected to be restarted before mid-December.
As a result of the delay to the restart of these plants, British Energy (LSE: BGY.L - news) has decided to seek an extension to deadline for its restructuring to Jan 31, 2005. It said it expects to reach an agreement for the extension shortly.


Off to a fine start. Note the Jan 31st date.

[bgyered] 18/11/2004 11:54

Here's a good reason not to buy Biofuels IMHO:

BIOFUELS Corporation, a producer of biodiesel, a vegetable oil based version of diesel, has appointed Clare Spottiswoode as a non-executive director. She is a non-executive director of a several firms in the energy sector, including British Energy (deputy chairman), Petroleum- Geophysical Services (based in Oslo), Tullow Oil, Advanced Technology, and Economatters.

Hope she gets what she deserves for her role in ensuring BGY shareholders got a right royal stuffing.

[kordeiv] 17/11/2004 12:36

LOL,

mind you, the way things are going it looks like a '71 Ford Capri for me!

;-(

Just hanging on in there and waiting to see what pans out

[skintvestor] 17/11/2004 12:34

Just ordered mine. Long waiting list though!!!!

[kordeiv] 17/11/2004 12:25

if that's the case then its down to


www.stratstone.co.uk

[mattheworchard] 17/11/2004 12:23

£100 per share

[snogger] 16/11/2004 18:47

Jay,

there are loads of people who think they know. Ther are loads that think they can work out the theoretical price.

Right know there is a grey market which is not easy to find but SK (on this thread with details back a few postings) will make a price.

I suspect that waiting will prove the best option as weve got a company that will make money

[jay178] 16/11/2004 16:42

does anybody know what 2.5% of the company equates to in value per share terms?

[jay178] 16/11/2004 16:36

thanks kordeiv. ill try and get on to them.in the meantime if anybody is clued up about these can you please share the info.
thanks in advance
jay

[kordeiv] 16/11/2004 16:07

jay178, you are in the same boat as me. I have exactly 30K sat in a nominee account. I got rid off the majority of my holding and left these in my portfolio........just in case. I am now regretting it.

I believe that you can sell them through the grey market but I don't know enough about that to reliably inform you.

I would like to get some sort of picture to what these shares are going to be worth come relisting. Do I continue to hold then or flog them? I don't know! I admit to being well confused by this.

One thing I do know is this. A few weeks ago a date of Jan 31st was mentioned in the press as a date of BGY relisting. When I mentioned this to the BGY shareholder helpline this morning they didn't know of this date. They would only say that the restructuring was going to plan and that shareholders would receive proxy forms inside three weeks at the latest.

Now you know as much as me. The helpline number is on the home page of the BGY website (freefone) so you may like to take it on yourself to give them a ring and lay out your problems to them and post back here with results. I am sure that the BGY holders who watch ADVFN will be more than interested.

Regards

[jay178] 16/11/2004 13:49

im a bit lost with these at the moment.can anybody tell me what i should do with the shares i am holding? if i was to sell how would i do that?

[kordeiv] 16/11/2004 09:43

A call to the BGY shareholder helpline tells me that inside 3 weeks holders will be receiving proxy forms, giving details of how the restructuring is progressing. The guy on the phone knew NOTHING about the date being suggested in the press (Jan 31st) so take that with a pinch of salt

[kordeiv] 16/11/2004 09:30

anyone got the latest spin on this outfit, namely has there been any change into the suggested Jan 31st relist date?

TIA (anticipation)