The U.K.’s Railtrack plc., London, owner of the national railroad infrastructure, could be out of insolvency protection by late this July following a novel financing proposal proposed by the government-sponsored company, now to be known as Network Rail Ltd. With off-balance sheet underwriting of Network Rail’s contingent liabilities, the government will enhance the company’s ability to raise £9 billion (US$12.9 billion) of short-term loans, as well as its long-term financing.

If accepted by Railtrack Group plc. and the court-appointed Administrator, the deal would provide shareholders with £500 million (US$715 million) cash from the government and Network Rail. Railtrack Group, which owns non-regulated assets as well as the infrastructure operator under administration, will spend most of April reviewing the offer, says a spokeswoman. If directors like what they see, they will seek shareholder approval in June, allowing for a deal to be closed the following month.