Creditors to bill TXU
TXU UK's death throes are to be played out at a meeting of creditors of the stricken energy giant next week.The meeting, at London's Inter-Continental Hotel, next Wednesday will confirm the winding up of the energy company.
By Paul Geater
TXU UK's death throes are to be played out at a meeting of creditors of the stricken energy giant next week.
The meeting, at London's Inter-Continental Hotel, next Wednesday will confirm the winding up of the energy company.
However the retail business will not be affected by the move – that was sold to Powergen in October.
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The balance sheet of TXU UK, which was cast adrift by its American parent company in October in the face of mounting losses, shows a hole of £384 million.
That is after the sale of its retail business to Powergen in October in a deal which ensured its electricity and gas customers would continue to receive energy.
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Most of the staff transferred to Powergen at this time – although they were told just before Christmas that there would be major staffing cutbacks in 2003 as the two companies' businesses merged.
The principle assets in Ipswich still owned by TXU UK were the nearly-completed new offices in Russell Road and the half-built car park a short distance away in Constantine Road.
Work on these major developments has now ceased until they are bought from the administrators.
Powergen is interested in taking over part of the Russell Road offices for its staff, but would not need the whole block and would not want to own the freehold.
Although the creditors' meeting is being held next Wednesday, companies and individuals owed money by TXU UK may not know how much they will get for some time.
The exact make-up of the balance sheet is not yet clear, and the meeting is expected to appoint a committee of creditors to protect their interests during the winding-up period.
Although the company is now almost extinct, the name will continue on customers' bills for the next few months.
But from April, TXU Energi is expected to disappear as a brand and bills will say Powergen instead.
This name change will also affect Ipswich Town, from next season the name on the shirts will be Powergen – the sponsorship deal signed with TXU in 2001 runs until 2005 and that was included in the sale.
Although until now Powergen has been seen as a major supporter of rugby, rather than football, the TXU deal made it the largest electricity retailer in Britain.
As such, it is keen to also be associated with the country's biggest sport – and sees the Town deal as central to this.