British Energy gets £410m government bailout

The British government has stepped in to prevent the collapse of British Energy by giving the nuclear firm three weeks' emergency…

The British government has stepped in to prevent the collapse of British Energy by giving the nuclear firm three weeks' emergency funding to negotiate a long-term rescue.

British Energy, which provides a quarter of Britain's electricity, said the state has agreed to provide £410 million sterling of emergency working capital until September 27th.

The news came as it emerged that three more of the cash-strapped company's reactors went offline over the weekend.

A maintenance shutdown at a reactor in August contributed to the group's decision to ask for a state handout last week.

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The company has been in talks with the government for months about help for its ailing business, hit by a 40 per cent fall in British power prices since 1998.

But its announcement last week that it faced insolvency without government money came as a shock to investors. Its stock and bonds remain suspended after trading was frozen last week.