LONDON (Bloomberg) — Britain's Department for Transport terminated the contract for GNER to run the main railway line between London and Scotland along the UK's east coast after the company's parent, Sea Containers Ltd., filed for bankruptcy.GNER will continue to operate the line under a temporary management agreement for the next 12-18 months until a replacement operator is selected, the department said last week in a statement. Sea Containers filed for bankruptcy in the US last month. GNER paid [POUNDSTERLING]1.3 billion ($2.55 billion) to operate the so-called East Coast line.

"The Government made it clear that rail operators that fall into financial difficulty should expect to surrender the franchise and not receive financial support," Secretary of State for Transport Douglas Alexander said in the statement.