LONDON — The British government has appointed a leading Ford executive to oversee the difficult task of rebuilding failed rail network operator Railtrack Plc, a wire service reported.
Ford of Britain Chairman Ian McAllister has been chosen by Transport Minister Stephen Byers to look into the government’s plans to set up a “not for profit” company to take over the running of the rail network, the sources added.
Railtrack fell into administration after the government refused to hand out further state aid to the privatised company.
However, the move angered shareholders as it rendered their investments worthless, and administrators Ernst & Young are currently examining possible bids to take over Railtrack’s assets, including one from German bank WestLB.
The new “not for profit” model proposed by Byers would be funded by debt rather than shareholders, and would plough any profit it makes back into the rail network.