We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Catalyst H.r Bd | LSE:40CZ | London | Bond |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
TIDM40CZ
RNS Number : 5675X
Catalyst Healthcare (Manchester)Fin
30 April 2019
THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF HOLDERS OF THE BONDS. IF HOLDERS OF THE BONDS ARE IN ANY DOUBT AS TO THE MEANING OR IMPORT OF THE CONTENTS OF THIS NOTICE OR REQUIRE FURTHER ADVICE, THEY SHOULD CONSULT THEIR OWN INDEPENDENT PROFESSIONAL ADVISERS (INCLUDING IN RESPECT OF ANY TAX CONSEQUENCES).
Catalyst Healthcare (Manchester) Financing PLC (the "Issuer")
GBP218,050,000, 2.411 per cent. Index-linked Guaranteed Secured Bonds due 2040
(including up to GBP38,000,000 Variation Bonds) unconditionally and irrevocably guaranteed as to scheduled payments of principal and interest pursuant to a bond financial guarantee issued by AMBAC Assurance UK Limited (ISIN XS0208052265) (the "Bonds")
NOTICE
To the holders of the Issuer's Bonds
Adjudication Decision - Deductions from Service Payments
Unless otherwise provided, terms defined in the Master Definitions Schedule dated 8 December 2004 (as the same may be amended, varied or supplemented from time to time) shall have the same meaning where used in this Notice.
As previously notified, Central Manchester University Hospitals NHS Foundation Trust (now, Manchester University NHS Foundation Trust) (the "Trust") has issued unavailability notices to the Issuer's associated company, Catalyst Healthcare (Manchester) Limited ("Project Co"), because of alleged defects in respect of the fire doors and smoke doors (the "Doors") at the Central Manchester University Hospital (the "Hospital") forming part of Project Co's PFI project.
The Issuer and Project Co have been working (and continue to work) with the Trust, Lend Lease Construction (EMEA) Limited (the "Contractor") and its supply chain to resolve these issues. The vast majority of the Doors have now been replaced.
The Trust has advised that, to the end of February 2019, it has accrued unavailability deductions of approximately GBP23.3 million in relation to the Doors. There is a dispute as to the Trust's entitlement to accrue these deductions at all (the "Dispute"). The Trust has deferred taking any sum in relation to these unavailability deductions (the "Deferred Deductions").
In order to assist them to resolve the dispute as to whether or not Project Co is liable to the Trust for any unavailability deductions in relation to the Doors, a number of legal issues and certain technical and factual issues relating to two of the Doors (the "Adjudication Doors") were referred to Stephen Furst QC (the "Adjudicator") to determine as an adjudicator.
During the course of the adjudication, it was agreed between Project Co and the Trust that no availability deductions could be levied by the Trust in relation to the Adjudication Doors because the alleged defects were remedied before availability deductions could accrue under the terms of the Project Agreement.
In his Decision dated 25 April 2019, the Adjudicator determined that the alleged defects in the Adjudication Doors did not breach the Safety Condition. This means that the Trust would not have been entitled to levy availability deductions in relation to the Adjudication Doors even if the alleged defects had not been remedied within the timescales required under the Project Agreement. Given that the alleged defects in the Adjudication Doors are materially similar to the alleged defects in the rest of the Doors, it is very likely that the Safety Condition will not have been breached in respect of any of the Doors and that the Trust is not entitled to the Deferred Deductions.
The Adjudicator's Decision is binding on the parties unless the Trust brings court proceedings and the court reaches a different conclusion to the Adjudicator in the future.
The Trust has not yet commenced court proceedings or indicated that it intends to do so. The Adjudicator's Decision supports Project Co's position that any court proceedings pursued by the Trust would be very unlikely to succeed.
However, if the Trust were to be successful in any such court proceedings:
1 Project Co considers that it would be able to recover the Deferred Deductions in full from the Contractor and/or other parts of Project Co's supply chain;
2 there is a low risk that the quantum of the Deferred Deductions and the timing of any recovery may affect project cashflows such that it would have a material impact on the ability of the Issuer to comply with its obligations to make scheduled payments of principal and interest on the Bonds; and
3 the Trust would have grounds to terminate the Project Agreement because of the level of deductions incurred in the previous 12 months. However, Project Co and the Issuer are hopeful that matters would be resolved amongst the parties before it reached that stage.
Project Co and the Issuer continue to take legal advice with respect to the matters mentioned in this announcement and keep the matter under continual review.
A further update will be given in due course.
Enquiries
If you have any enquiries, please direct them to the Issuer
The Issuer
Catalyst Healthcare (Manchester) Financing PLC
c/o Albany SPC Services Limited,
3rd Floor,
3-5 Charlotte Street,
Manchester,
M1 4HB
Attention: Ailison Mitchell
The Principal Paying Agent
The Bank of New York Mellon,
International Corporate Trust Services,
Merck House, Seldown,
Poole, Dorset,
BH15 1PX
The Bond Trustee
Law Debenture Trustees Limited
Fifth Floor, 100 Wood Street,
London
EC2V 7EX
This notice is given by Catalyst Healthcare (Manchester) Financing PLC
30 April 2019
David Tapply
General Manager
Catalyst Healthcare (Manchester) Ltd
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
END
FURSDISUSFUSEIL
(END) Dow Jones Newswires
April 30, 2019 06:03 ET (10:03 GMT)
1 Year Catalyst H.r Bd Chart |
1 Month Catalyst H.r Bd Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions