The modernisation programme had failures that were technical as well as managerial, such as the moving block signalling apparatus being immature for such a busy mixed-traffic mainline. In 2000, reports emerged that Railtrack may not be able to go through with its planned commitment to purchase section 2 of High Speed 1, resulting in disruption and uncertainty for that programme as well. In February 2001, Steve Marshall, the company's chairman, stated that Railtrack could have a net debt of approximately £8 billion by 2003. During May 2001, Railtrack announced that, despite making a pre-tax profits before exceptional expenses of £199m, the £733m of costs and compensation paid out over the Hatfield crash plunged Railtrack from profit to a loss of £534m. This loss compelled the organisation to approach the government for funding, which it controversially used to pay a £137m dividend to its shareholders in May 2001. Months later, Railtrack sought another bailout from the government. Administration On 7 October 2001, Railtrack plc was placed into railway administration under the Railways Act 1993, following an application to the High Court by the then Transport Secretary, Stephen Byers. This was effectively a form of bankruptcy protection that allowed the railway network to continue operating despite the financial problems of the operator. The parent company, Railtrack Group plc, was not put into administration and continued operating its other subsidiaries, which included property and telecommunications interests. If this action had not been taken, rail services throughout Britain may have entirely stopped for a time. For most of the year in administration, the government's position had been that the new company would have to live within the existing regulatory settlement (£14.8 billion for the five years 2001–2006). However, it soon became obvious that that was impossible, and that the aftermath of the Hatfield crash had revealed that the network required significantly more money for its operation, maintenance and renewal. It was reported on 23 November 2001, that a further £3.5 billion may be needed to keep the national railway network running, a sum disputed by Ernst & Young, the administrators. During February 2002, the European Commission approved the provision of state aid to the ailing Railtrack in order to maintain operations. To get Railtrack out of administration, the government had to go back to the High Court and present evidence that the company was no longer insolvent. The principal reason given by the government