AES bought the power plant for �1.87bn

The Drax site, near Selby, North Yorkshire, has estimated debts of �1.3bn.

Its American owners AES have now withdrawn four of its executives from the Drax staff leaving independent directors in charge.

Creditors had refused to accept the company's financial restructuring plan for Drax.

AES bought Drax in 1999 for �1.87bn but was forced into negotiations last year after the collapse of the power station's largest customer TXU Europe.

Last month, International Power offered to buy a stake in Drax, take on some of its debt and manage the plant.