The UK's largest electricity generator British Energy has revealed it has instigated legal proceedings against Credit Suisse over the financing of its Eggborough power station.
British Energy unveiled details about the legal action as it revealed it experienced positive output in the financial year, with output standing at 58.4 terawatt hour (TWh) - said to be marginally ahead of current market expectations. Concerning the Credit Suisse action a statement said: „The transactions in question relate to the exercise of the lending banks” options to acquire the power station in 2010. „The arrangements involve the consolidation of interests into a company called Ampere Limited, which would control the exercise of the options to acquire Eggborough.
„However British Energy says it has received legal advice that such arrangements are not permitted under the Eggborough finance agreements and it „does not consider the transactions in question to be in the best interests of British Energy and its shareholders”. The case against the Zurich-based firm, expected to begin on May 21st, seeks a declaration that the proposed transactions are unlawful. (news.monstersandcritics.com)