SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
March 24, 2003
BRITISH ENERGY PLC
(Registrant's name)
3 Redwood Crescent
Peel Park
East Kilbride G74 5PR
Scotland
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F..X.. Form 40-F.....
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes ..... No ..X..
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b):
Exhibit Index
The following document (bearing the exhibit number listed below) is furnished
herewith and is made a part of this Report pursuant to the General Instructions
for Form 6-K:
Exhibit Description
No. 1 RNS Announcement, re: Update on Restructuring dated 24 March 2003
BRITISH ENERGY plc
(the "Company")
UPDATE ON RESTRUCTURING PROCESS
On 14th February 2003, British Energy announced that:
- it had reached agreement on a binding basis with Significant Creditors
including certain Bondholders, on the terms of a standstill; and
- it had reached a non-binding agreement with Significant Creditors including
certain Bondholders on the principles of the Company's restructuring,
subject in each case to certain approvals required by 24th March 2003 and
certain Enron US Bankruptcy Court approvals required by 14th May 2003.
The necessary approvals required by 24th March 2003 have now been obtained and
the standstill agreement is now effective between the Company, British Nuclear
Fuels plc, the Eggborough bank syndicate, The Royal Bank of Scotland, Teeside
Power Limited and TotalFinaElf Gas and Power Limited. The Enron board approvals
have been obtained and the required US Bankruptcy Court approvals are expected
to be obtained and the standstill is expected to become binding on Enron Capital
& Trade Europe Finance LLC by 14th May 2003.
As announced earlier today the Company had also convened meetings of the holders
of each of its outstanding GBP109,861,000 5.949 per cent. Bonds due 2003 (the
"2003 Bonds"), GBP163,444,000 6.077 per cent. Bonds due 2006 (the "2006 Bonds")
and GBP134,586,000 6.202 per cent. Bonds due 2016 (the "2016" Bonds") (together
the "Bonds") in order formally to incorporate the standstill arrangements into
the terms of the Bonds. These meetings were duly held on 24 March 2003. The
standstill resolutions proposed at the meetings of the 2003, 2006 Bonds and 2016
Bonds were duly passed with holders of, respectively, 85.05%, 81.49% and 80.32%
of the bonds outstanding voting in favour and no votes against. Accordingly the
standstill is now binding on all Bondholders.
For further information please contact: Andrew Dowler
020 7831 3113
Notes:
1. The legal structure and the steps necessary to implement the proposed
restructuring, together with their accounting and tax consequences, have not
been finalised. Implementation of the proposed restructuring will require
the development of a structure and steps which permit the commercial and
economic effects outlined on 14th February 2003 to be achieved without
material adverse taxation or accounting consequences. The detailed terms of
the restructuring will need to be discussed and agreed with the Inland
Revenue.
2. The restructuring remains subject to a large number of significant
uncertainties. Formal agreements will need to be reached with Bondholders,
the Eggborough bank syndicate, TPL, TFE, Enron and RBS in relation to the
restructuring of their diverse financial interests. No agreement has been
reached in relation to the price or terms of any sale of Amergen. The
European Commission may not approve the restructuring or may impose
conditions to such approval that would affect the financial terms or even
the viability of the restructuring. The Secretary of State is entitled to
cancel and require immediate repayment of the HMG Credit Facility if, among
other things, in the opinion of the Secretary of State the restructuring
cannot be implemented in the timescale or manner envisaged. In addition
the standstill arrangements may be terminated following the occurrence of
certain termination events.
3. If such agreements cannot be reached or the required approvals are not
forthcoming, the assumptions underlying the proposal are not fulfilled or
the conditions to the restructuring proposal are not satisfied or waived in
each case within the timescales envisaged, or the HMG Credit Facility
or the standstill arrangements are terminated, then the Company may be
unable to meet its financial obligations as they fall due and therefore the
Company may have to take appropriate insolvency proceedings. The Board
considers that, in the event of insolvency, distributions, if any, to
unsecured creditors may represent only a small fraction of their unsecured
liabilities and there is unlikely to be any return to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: March 24, 2003 BRITISH ENERGY PLC
By:____Paul Heward____
Name: Paul Heward
Title: Director - Investor Relations