Energy source

By THIS IS MONEY
Updated:

 

Can you explain to me in layman's terms what is happening with British Energy? I have received a voting form today and an explanation that I think is written in a foreign language! What should I be voting for to protect my interests? CF, Colchester

Hilary Cook at Barclays Stockbrokers says: British Energy has agreed a debt-for-equity swap as part of a restructuring plan to save it from bankruptcy.

This means that lenders who are owed money will receive a large number of new shares in the company in exchange for wiping out the debt.

As a result, existing shareholders will end up with 2.5% of the new company. Some large shareholders have tried to block this but it looks set to go through and you will receive new shares in due course whichever way you vote.

• BOARDS: Advice on British Energy


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