Creditors have taken control of one of the largest coal-fired power plants in the UK – Eggborough, owned by EDF Energy, after it was found it would need £150m in investment to meet European emissions standards by 2016.

Eggborough is owned mostly by creditors, with 80% of its debt claims belonging to Bluebay Asset Management and Strategic Value Partners, which decided to take control of the plant following EDF’s takeover from British Energy earlier this year.

Investors, which took debt claims out against the plant in 2005 have the right to take ownership next year.

It is believed the coal-fired plant could be worth between £750m and £1bn if sold.

The funds group have already spent £216m on exercising the option, and potential bidders have already expressed interest.

It is not the first time investors have fought to take control of the Yorkshire plant. In 2007 British Energy blocked a similar move after writing off £300m in 2002 following a slump in electricity prices, a report in the Financial Times said.