Shares in embattled nuclear power generator British Energy have slumped to fresh lows amid renewed fears the company could be put into administration.

British Energy shares, which have nosedived since the company admitted it was in danger of running out of cash earlier this month, had fallen by a further 30% to 11.75p by 1455 GMT.

The share price slide reduced the company's market value to about �100m ($153m), down from over �5bn at its peak three years ago.

The latest sell-off came after the Financial Times newspaper reported that the government is coming round to the view that the firm should be put into administration.

The FT quoted an unnamed government source as saying that administration was "very much an option" after an inspection of the company's finances suggested that bailing it out would cost more taxpayer's money.

Cash crunch

British Energy, which operates eight nuclear power plants in the UK, asked the government for assistance on 6 September.

The government has given the firm a �410m loan facility, which expires on 27 September, to keep it going long enough to draw up a restructuring plan.

British Energy, which provides a fifth of the UK's power, has been hit by lower electricity prices since the wholesale power market was freed up last year, and by a shutdown at one of its facilities.

Other power firms have been able to offset the weak wholesale market by maintaining higher retail prices, but this strategy is not available to British Energy, which does not have a retail arm.

The firm, which was privatised just six years ago, is thought to need about �300m this year to pay off debts and cover losses.