The lenders have gained the right to buy the 1,960MW facility through a restructuring of British Energy, which was acquired by the French utility at the beginning of 2009.
EDF in a statement, said: “EDF confirms that British Energy’s lending banks have exercised their option to acquire the Eggborough coal power station under the restructuring agreements made by the British government in 2005.”
Reportedly, the hedge funds Bluebay Asset Management and Strategic Value Partners hold approximately 80% of the debt claims, which were bought following the 2005 restructuring of the UK nuclear power generator. Before the end of August 2009, the investors were obliged to exercise their option that allows lenders to acquire Eggborough for GBP104m plus a waiver of approximately GBP83m of outstanding debt secured on Eggborough assets.
EDF says: “The transaction is in line with the commitments EDF made to the European Commission, approved in 2009, as part of its acquisition of British Energy.”
