UK News 09-10-2001 Government Faces Legal Action Over Railtrack Break-Up who: Railtrack chief executive Steve Marshall what: Resigns over "shoddy and unacceptable" treatment where: LONDON when: Yesterday snippet: "Steve Marshall quit as chief executive of Railtrack yesterday," reports The Independent, "and immediately launched a scathing attack on the Government over its `shoddy and unacceptable` treatment of the company and its shareholders." The government announced on Sunday that it would no longer bail out Railtrack and that the company had been handed over to administration. But Mr Marshall, who will work six months` notice, "said ministers had reneged on a pledge given in April to pay the company £1.5 billion in instalments," says The Times. "Several hundred million pounds were outstanding on Friday and Mr Marshall said he had evidence that the flow of funds had been cut off earlier in the week." "I can`t see this going unchallenged," says a "city expert" quoted in The Mirror, suggesting that US investment firms, which own about ten percent of the company, may be "inclined to use the courts as a weapon". "Last night Railtrack`s directors threatened legal action against Ernst & Young, the administrators, and a cohort of banks demanding the return of £350m cash," says The Telegraph. Railtrack plc says the money, currently frozen until the company`s financial position is clarified, belongs to companies within the group not affected by the administration order. [... more]

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