3.7 The Department's negotiations over NATS took place against a background of tense relationships with private sector financial institutions over Railtrack. In October 2001 the Secretary of State for Transport applied to have Railtrack put into administration, from which it emerged a year later. The Department promoted Network Rail as the vehicle to get Railtrack out of administration and was involved in negotiations with banks about the terms on which they would extend finance to it. These negotiations were taking place at the same time as negotiations on NATS refinancing, probably slowing the process while the banks considered whether there was any potential read across.