The two Metronet companies, Metronet Rail BCV and Metronet Rail SSL, entered into administration on July 18, 2007, after the PPP Arbiter's Interim Determination award of just £121m for Metronet Rail BCV, when the company had been seeking a £551m Interim Determination and £992m in total.

Now TfL wish to take over the company. London Underground Managing Director, Tim O'Toole said: "We strongly believe that the best and most robust way to achieve our ultimate goal is for an exit from the Administration process as early as possible."

Under Transport for London's plans, the people and the assets of the two Metronet companies, BCV and SSL, will be transferred into two Transport for London nominee companies, which will be managed on a standalone basis whilst the long-term structure is agreed with the Mayor and Government.

O'Toole added:  "In dealing with the collapse of Metronet, and through the Administration process, we have had two key priorities.  First, to ensure the continued safe and reliable operation of the Tube network for passengers. That has been achieved and I would like to pay tribute to the hard work and dedication shown by all Metronet and London Underground staff, as well as the Administrator and his team.  We need to continue to work together for passengers.

"Secondly, once under Transport for London control, we seek to put in place a stable, economic and efficient structure that is better able to deliver our investment priorities that will lead to increased capacity on the Tube in future.

Transport for London's bid for the two Metronet companies has been constructed on the basis that there should be no net additional cost to the organisation.