CGE Power falls as banks demand cash

CGE Power, the bank consortium formed to acquire distressed UK power assets, has withdrawn offers totalling around £3 billion on 12 plants and ceased trading after proposals to acquire two key power plants were rejected by lenders, according to a spokesman.

The company – backed by Abbey National, Bayerische Landesbank, Bank of Scotland, HVB, Lloyds TSB and The Royal Bank of Scotland – says momentum failed as its plans to acquire Killingholm and Damhead plants by using the debt market fell through.“These two plants were integral to CGE Power’s plans,” said a source. “But ScottishPower and Centrica came out and made cash offers. Meanwhile CGE Power couldn’t get unanimity from the lenders which control the plants – they wanted cash today.”

CGE’s

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