Britain's monopoly track operator, Railtrack said today that emergency repair work and rail chaos left it with a bill more than double its original estimates.
The company, which runs Britain's rail tracks and stations, said it would appeal to the British rail regulator to allow it to bring forward £1 billion sterling (euro 1.56 billion) in public funds not due to enter its coffers until after 2006.
"We don't make any secret of the fact that we are pretty stretched financially at this stage," Railtrack's chief executive Mr Steve Marshall said after announcing the company would report £600 million in one-off losses in 2000/01.
Railtrack shares slipped three per cent on the news. The company said it was headed for a significant loss for the year, including another £70 million sterling arising mostly from higher payments to train operators.
British transport analyst Mr Michael Stoddart, of ING Barings Charterhouse, said the bottom-line loss could total up to £300 million or more. Before today's announcement, he was expecting net profits of around £77 million.
Reuters