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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 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' | '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. |