Road Management Services (A13) PLC Re Agreement (1603M)

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RNS Number : 1603M

Road Management Services (A13) PLC

18 January 2016

ROAD MANAGEMENT SERVICES (A13) PLC (the "Company")

Registered Office: Carillion House, 84 Salop Street, Wolverhampton WV3 0SR

Company Number: 03917644

The Company received a letter before action on 5 June 2015 on behalf of MBIA UK Insurance Limited ("MBIA") asserting that the Company is liable under the terms of a Collateral Deed and an Insurance and Indemnity Agreement entered into between the Company, MBIA and certain other parties in April 2000, to reimburse circa. GBP2 million to MBIA in respect of advisor fees incurred by MBIA as a result of breach of certain financial covenants as notified to the creditors on 13 April 2011. MBIA is one of the creditors of the Company in connection with the financing of the PFI project granting a concession or the operation and maintenance of the A13 road.

The Company is pleased to announce that they have now agreed and executed settlement terms in relation to the above dispute on 12 January 2016. There is therefore no remaining potential litigation pending with regard to this letter.

Gordon Howard

Company Secretary

18(th) January 2016

This information is provided by RNS

The company news service from the London Stock Exchange

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(END) Dow Jones Newswires

January 18, 2016 06:02 ET (11:02 GMT)