British Energy Completes Sale Of Canadian Unit

LONDON -- Troubled nuclear generator British Energy said it had completed the sale of its Canadian subsidiary Bruce Power, another key step in its financial restructuring.

The company said in a brief statement that it had completed the sale of its 82.4 per cent stake in Bruce Power for an initial consideration of 250 million pounds.

British Energy also received 51 million in recognition of a capital contribution it paid Bruce Power in December when the sale was initially agreed.

The government, which had said it would call in a state loan that was keeping the privatised firm afloat if agreement was not reached with bondholders and trade creditors, said earlier it was willing to extend credit after March 9, but at a lower rate.

The loan, standing at 650 million pounds ($1.05 billion), has kept the provider of a fifth of Britain's electricity going since September, when it sought help to stave off bankruptcy.

The government welcomed the progress made by British Energy in implementing its restructuring, but said further "hard work" was needed to complete it and that being put into administration was still a possibility.

Source: Reuters