Hedge fund threatens British Energy deal

British Energy

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On July 23, the UK’s nuclear energy provider British Energy announced that Polygon, a hedge fund, had acquired a 5.6% stake in the firm. Two days later, in the financial pages of the Sunday broadsheets a flurry of stories appeared on how Polygon was poised to challenge British Energy’s debt-for-equity swap which had been finalised with creditors last October. Polygon was suggesting that a new deal be negotiated whereby shareholders receive 30% of the company rather than 2.5% and bondholders rece