CALLS for debt-laden British Energy to revise the terms of a restructuring agreed last year were rejected by its chairman yesterday.

Adrian Montague said the arrangements with creditors were binding, even though conditions in its market have improved because of higher power prices.

Shareholders will be left with 2.5 per cent of the company, which owns Hartlepool Power Station, following the Government-backed restructuring.

The restructuring was agreed last year but has taken longer to complete because of the need for European Commission permission for state aid can be given.

Polygon Investments, a fund owning 5.6 per cent of the nuclear generator, is leading calls for shareholders to be given a larger stake in the restructured group.

In a letter to the Financial Times, Mr Montague said he regretted the dilution of shareholder interests, but said there was nothing the company could do to change the position.