Business Weekly - Cambridge, UK

The energy company, which has been left looking for a buyer for its businesses in the wake of the withdrawal of key £450m funding by its US parent, said that the move to a new purpose built £35m HQ building in Ipswich Village in Easter remains on track.

A spokeman for TXU Europe said that the company had “done very well” to negotiate a “working arrangement” with creditors and suppliers, which would allow the company to continue trading until a buyer was found for the “whole or parts of the business.”

Under the TXU Europe umbrella, the company operates in electricity and gas retail, electricity generation and energy trading.

The spokesman said: “We are confident that we have worked out a solution to maintain the business going forward, which given where we were a few days ago is good.

“There will be redundancies among our 1,000-strong Ipswich workforce but until we have had a chance to discuss this with matter properly with the employees themselves, we cannot be exact on numbers.”

TXU Corporation based in Dallas, Texas blames the current situation on low prices and increased competition in the British electricity markets, compounded by negative sentiment towards energy companies among investors.

Employees will be moving from the company’s existing Ipswich sites at Suffolk House, Fisons House, Constantine House and Wherstead Park to the new HQ in Easter 2003.