City of London insolvency lawyers are unconvinced about Railtrack investors' chances of recouping losses from the collapsed UK railway operator by suing the UK government.

Disgruntled Railtrack shareholders include Fidelity Investments, which has a 4.02% stake and Morley Fund Managers with a 4.5% stake. They are angry that the government put Railtrack into administration, meaning dividends are frozen, without at least prior consultation with either the company, or its shareholders, on an alternative way of dealing with the company and its debt position.