18th Jul 2007 07:01
Balfour Beatty PLC18 July 2007 18 July 2007 METRONET BCV AND METRONET SSL APPLY FOR PPP ADMINISTRATION ========================================================== The directors of Metronet BCV Ltd and Metronet SSL Ltd, the PPP concessioncompanies responsible for the upgrade and maintenance of two-thirds of LondonUnderground's rail system under the Public Private Partnership, have asked theMayor of London to seek the appointment of a PPP Administrator for thesecompanies. Balfour Beatty has a 20% interest in these companies. In its 2007 interim trading update on 26 June, at which time the Metronetconcessions were going concerns, Balfour Beatty announced that there would be anexceptional charge of approximately £100 million in its half-year accounts inrespect of its interest in Metronet. This arose in the light of the level ofunanticipated costs associated with Metronet's capital programmes and Metronet'sfunding position at that time. The charge comprised, largely, the write-off ofMetronet equity and the write-back of profits in respect of the equityinvestment, recognised in previous years. In the light of this application, theexceptional charge may be higher, with the final sum reflecting the extent towhich day-to-day trading balances between Balfour Beatty operating and affiliatecompanies and Metronet are recovered. Balfour Beatty will work closely with Metronet, London Underground and theAdministrator in order to ensure that the daily operations of the tube remainunaffected over the coming period. The company remains committed to the creationof a world-class underground system for London and will continue to provide suchservices to London Underground as required and requested under the new ownershipstructure which succeeds Metronet. ENDS Enquiries to:Tim SharpTel: 020 7216 6884Mobile: 07710 359707www.balfourbeatty.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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