Railtrack heads for pounds 900m write-off
Wednesday 28 February 1996
Ministers are close to reaching agreement with the Railtrack board over a debt level of about pounds 600m. Since Railtrack has existing debts of pounds 1.5bn, this will mean a write-off of about pounds 900m for the Government. Provisional debts of pounds 600m have been pencilled in for the flotation, a level which Railtrack appears relatively happy with.
Negotiations over the debt level have been prolonged and sometimes heated, with Railtrack arguing that it would be incapable of investing adequately if it is saddled with too much. The talks sometimes involved a degree of brinkmanship by the Railtrack chairman, Robert Horton, though he stopped short of threatened resignation.
The outcome is a compromise - Railtrack would have liked less - but most observers thought it a good result for the company ahead of privatisation.
The Treasury appears to have eased its hard line - it wanted up to pounds 1bn of debt in the balance sheet - after ministers decided to give the go- ahead to the Thameslink 2000 project, an upgrade of the track linking north and south London.The go-ahead for the project was formally announced by the Government yesterday.
Agreement on debt removes one of the last obstacles to Railtrack's flotation, scheduled to take place in May. The company is expected to be valued at about pounds 2bn, and with debt now secure at a manageable level, holds out the prospect of a steadily rising dividend stream.
- 1 Gwyneth Paltrow and Chris Martin file for divorce after 10 years of marriage
- 2 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 3 Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
- 4 Bookies now say Ed Miliband is more likely to be prime minister than David Cameron
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Gwyneth Paltrow and Chris Martin file for divorce after 10 years of marriage
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor David Dinsmore reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
iJobs Money & Business
£12000 - £15000 per annum: Recruitment Genius: An expanding Insurance Brokerag...
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...