SHARES in troubled power company British Energy were trading again yesterday following a life-saving restructuring package.

The future of all the nuclear power plants owned by British Energy, including Hartlepool Power Station, was looking more secure last night as it returned to the London Stock Exchange with a market value of about £1.5bn.

Shares were given the go-ahead to start trading - at 285p - after the High Court in Edinburgh approved the Government-backed restructuring on Friday.

In a scheme drawn up in October 2003, banks and bondholders wrote off about £1.3bn in debt in return for control of the group - leaving shareholders with only 2.5 per cent of newly-created British Energy Group.

Without the debt-for-equity swap, which also required the support of the European Commission, British Energy would have faced insolvency.

It was plunged into financial difficulties by a sharp fall in wholesale electricity prices.

Despite the financial overhaul, chief executive Mike Alexander said the company's job was far from over.

He said: "The new management team has started to address the past under-investment and unacceptable output. We must put that right but it will not be easy and it will take time."

The challenges facing British Energy were highlighted last month when first-half losses after tax and one-off items came in at £262m, against £79m last time.

The company added that the rest of 2004/5 would be difficult due to a number of unexpected shutdowns at its plants since mid-March and delays in reopening power stations at Hartlepool and Heysham.

City firm Credit Suisse First Boston (CSFB) initiated its coverage of British Energy with a target price of 262p a share.

However, CSFB said much depended on electricity prices, which are on an upward curve with long-term predictions of between £25 and £35 per megawatt hour. That compares with £21 achieved in the year to March.

CSFB said: "The movement of the electricity price over the next few years probably remains the biggest value driver for the group."