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Metronet is facing administration Metronet is facing administration
(10 minutes later)
Tube maintenance company Metronet is facing the threat of administration unless a last minute rescue is found. Tube maintenance company Metronet is facing the threat of administration unless there is a last-minute rescue.
The firm, a public-private partnership (PPP), had asked London Underground for £551m to cover extra costs as it upgraded parts of the tube system. Metronet is part of a public-private partnership (PPP), which use private sector money to fund public projects.
However, the regulator that oversees PPPs, which use private sector money to fund public projects, awarded the firm £121m, triggering the current problems. 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 will meet on Monday before making a statement. Metronet said that its board would be meeting before making a statement either late on Monday or on Tuesday.
'Intervention''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."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."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.""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.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.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.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.The company has been embroiled in a battle over who should foot the bill.