Transport for London likely to face bankruptcy, Guardian says
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Negotiations to extend the deal for government funding failed to yield an extension.
PHOTO: EPA-EFE
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LONDON (BLOOMBERG) - London's transport authority might declare bankruptcy within days if the government fails to provide financial support, the Guardian reported on Sunday (Feb 20), citing a spokesperson for the company.
The UK government bolstered Transport for London (TfL) with a series of short-term funding deals, but the latest ran out on Friday.
Negotiations on Saturday to extend the deal, involving London Mayor Sadiq Khan, failed to yield an extension, the newspaper reported.
Without a clear indication of government backing, TfL won't be able to fulfil its legal requirement to declare it can balance its budget, according to the spokesperson.
The number of people using TfL services remains far below pre-pandemic levels, the newspaper reported.
