UK tube company Metronet goes into administration
{{date|July 18, 2007}}

[[w:Metronet|Metronet]], a company set up to manage the upgrade of three-quarters of London's tube network, has gone into [[w:Administration (insolvency)|administration]] (which is similar to [[w:Chapter 11, Title 11, United States Code|Chapter 11]] in the [[United States]]) after having accrued debts of up to £2 billion, following the decision on Monday to limit the amount of extra funds that the company would receive from public funds.

A notice on the Metronet website announced that the Boards of both Metronet BCV (responsible for the upgrade of the Bakerloo, Central and Victoria lines) and Metronet SSL (responsible for upgrade of the 'sub-surface' lines) had asked the Mayor to seek the appointment of a PPP Administrator. The statement says that the decision follows a period of 'financial uncertainty', with the decision of the arbiter leaving Metronet "unable to carry out its contract".

Metronet's shareholders, the companies [[w:WS_Atkins_PLC|Atkins]], [[w:Balfour Beatty|Balfour Beatty]], [[w:Bombardier|Bombardier]], [[w:EDF Energy|EDF Energy]] and [[w:Thames Water|Thames Water]] had blocked access to an extra funds, and each have a limited liability of £350 million, their original equity stake.

[[w:Transport for London|Transport for London]] have reassured the public that tube services will not be affected - Metronet is not responsible for day-to-day operation - but it is so far unclear what will happen to the upgrade contracts.

==Related news==
*{{wikinews|title=UK transport firm Metronet facing administration|date=July 16, 2007}}

==Sources==
*{{source|url=http://news.bbc.co.uk/1/hi/business/6903977.stm
|title=Metronet calls in administrators
|author=
|pub=BBC News Online
|date=July 18, 2007}}
*{{source|url=http://business.guardian.co.uk/story/0,,2128999,00.html
|title=Metronet goes into administration
|author=Dan Milmo, transport correspondent
|pub=Guardian Unlimited
|date=16 July, 2007}}

==External links==
*[http://www.metronetrail.com/ Metronet website]

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[[Category:Transport]]
[[Category:London]]
[[Category:England]]
[[Category:Economy and business]]
Metronet, a company set up to manage the upgrade of three-quarters of London's tube network, has gone into administration (which is similar to Chapter 11 in the United States) after having accrued debts of up to £2 billion, following the decision on Monday to limit the amount of extra funds that the company would receive from public funds.

A notice on the Metronet website announced that the Boards of both Metronet BCV (responsible for the upgrade of the Bakerloo, Central and Victoria lines) and Metronet SSL (responsible for upgrade of the 'sub-surface' lines) had asked the Mayor to seek the appointment of a PPP Administrator. The statement says that the decision follows a period of 'financial uncertainty', with the decision of the arbiter leaving Metronet "unable to carry out its contract".

Metronet's shareholders, the companies Atkins, Balfour Beatty, Bombardier, EDF Energy and Thames Water had blocked access to an extra funds, and each have a limited liability of £350 million, their original equity stake.

Transport for London have reassured the public that tube services will not be affected - Metronet is not responsible for day-to-day operation - but it is so far unclear what will happen to the upgrade contracts.
Transport London England Economy and business