Air traffic control quashes bankruptcy rumours

National Air Traffic Services (NATS) has denied it is facing bankruptcy due to banks foreclosing on their loans.

Abbey National, Bank of America, Barclays and Halifax were thought to be attending the NATS board meeting today to announce their intentions to foreclose.

However, a spokeswoman from Barclays Capital said: "We are talking to NATS, the Civil Aviation Authority (CAA) and the government about sorting out a solution. At the moment we're at the negotiation stage, but we're nowhere near pulling the plug."

The banks were rumoured to be demanding compensation from the government for propping up the cash-strapped company, after transport secretary Stephen Byers sold the government's 46 per cent stake in the organisation against the wishes of the CAA.

A NATS spokeswoman added: "It is not in [the banks'] interests for NATS to go into administration."

Following the terrorist attacks of 11 September NATS has seen a massive drop in its revenues as airlines cancelled flights into and out of the UK.

The service has come up with a £200m cost cutting regime and claims the banks are behind it all the way.