Polygon Investment Partners, the hedge fund that has spent the past three months fighting a plan to restructure £1.5bn (€2.2bn) of debt at British Energy, has agreed a compromise.

Polygon, a 6% shareholder, will not now press ahead to have British Energy's restructuring plan thrown out at a special shareholders' meeting on October 22 and in return, British Energy and its bondholders have agreed to stop all legal action against Polygon.