Shaker for GNER As Parent Derails Its Bid to Run South West Trains
Posted on: Wednesday, 14 June 2006, 12:00 CDT
By Robert Lea, Evening Standard, London
Jun. 12--The future of King's Cross-based GNER was plunged into further doubt today after the company was forced to pull out of its attempts to win the South West Trains rail franchise because of the financial crisis at its parent Sea Containers.
Christopher Garnett, the GNER chief executive who has made no secret of his desire to win the Waterloo-based franchise, Britain's biggest and the busiest commuter service in Europe, said: "This is bitterly, bitterly disappointing."
GNER's South West Trains bid has been halted after Sea Containers admitted it is still in no position to release its 2005 financial results.
In said its net cash position had plunged, it is in default of many of its secured credit facilities and may not be able to pay $115 million (£62.5 million) of top-ranking debt due in October.
As a result, the company said, it has withdrawn support for GNER's new franchise bid as "the most prudent step to take at this time".
Garnett said he would not be resigning. "I have a very heavy workload here. It is just bitterly disappointing as we had put together a very exciting bid for South Western," he said.
GNER had bid jointly with Hong Kong's metro company MTR, which said it would continue as a solo contender for the franchise.
South West Trains incumbent Stagecoach is fighting bids for the franchise from MTR, Liverpool Street and St Pancras group National Express, Paddington-based First Group and buses group Arriva.
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SCRA, ARI, NEX,
Source: Evening Standard
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