Stakeholders, which also include Bombardier Transportation, EDF Energy and Thames Water, have already lost in excess of 100m in respect of their interests with Metronet and today transferred ownership to Ernst and Young, the appointed administrator.
 
Metronet have said that the suppliers would be paid for invoices already approved and going forward, suppliers would be paid usual rates on existing terms and conditions during the administration.
 
The PPP administrators will be having separate conversations with the shareholder companies and their subsidiaries in relation to their arrangements.
 
Balfour Beatty, who has a 20% interest in Metronet, has long been seen as the shareholder with the biggest stake in sustaining Metronet. It does a good deal of work for the tube company and has interests in public sector projects elsewhere that could be damaged by Metronet’s failings. Despite this, the company said it remains “committed” to provide services to the London Underground as required and requested under the new ownership structure which succeeds Metronet.
 
The directors of Metronet will continue in office and will work closely with the administrators who have access to government funding put in place with the PPP administration model.