DEUTSCHE BANK has piled further pressure on rebel British Energy shareholder Polygon ahead of this Friday’s deadline for the nuclear generator to call an extraordinary meeting to discuss alternative proposals to a planned restructuring, writes Matthew Goodman.
Lawyers acting for Deutsche, which is a British Energy bondholder, have written to Polygon, a 6% shareholder, insisting that they will pursue the hedge fund for an estimated £1.7 billion damages if its actions derail the proposed restructuring.
The move comes as lawyers acting for other bondholders have also started legal proceedings against Polygon and fellow shareholder Brandes, which also owns 6% of the company.
Adrian Montague, British Energy’s chairman, has warned that the nuclear power company could be forced into administration if the rescue deal is blocked by shareholders.
Under the rescue plan, agreed last October, existing investors would own 2.5% of the firm, with warrants for another 5%.
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But Polygon thinks rising electricity prices have made alternative options viable.