LCR reclassification could be light at the end of tunnel for Treasury Plans to resolve the company's debt will be a relief, write Robert Wright and Chris Giles LONDON 1ST EDITION

Sir [Adrian] has excellent credentials for resolving the problem of LCR's debt. He is a former adviser to the Treasury, and worked on the 1998 rescue bid that put the government's controls over the company in place. Yesterday's reclassification decision stemmed from the ONS's rec...

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Bibliographic Details
Published inThe Financial times (London ed.)
Main Author CHRIS GILES and ROBERT WRIGHT
Format Newspaper Article
LanguageEnglish
Published London (UK) The Financial Times Limited 21.02.2006
Subjects
Bids
Merchant banks
Public sector
Tunnels
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Summary:Sir [Adrian] has excellent credentials for resolving the problem of LCR's debt. He is a former adviser to the Treasury, and worked on the 1998 rescue bid that put the government's controls over the company in place. Yesterday's reclassification decision stemmed from the ONS's recent discovery of a number of government controls over LCR, about which officials say they were not informed before they started examining a bond issue by LCR in 2003. The government's rights include: the right to force the sale or flotation of LCR and to take at least 90 per cent of the proceeds; the right to veto the sale or purchase of any shares in LCR before 2011; the right to appoint a non-executive director; rights to 35 per cent of LCR's cashflow from 2021, and the right to approve LCR's budget.
ISSN:0307-1766