CONSORT HEALTHCARE (TAMESIDE)
PLC
The outstanding 1.9810 per
cent. Index-Linked Guaranteed Secured Bonds due
2041
ISIN
XS0321115130
(the
"Notes")
RNS
REGARDING CHANGE OF OWNERSHIP AND SHORT-TERM
STANDSTILL
Consort Healthcare (Tameside)
plc
London, 31 July 2024 - Consort
Healthcare (Tameside) plc (the "Company"), a project company for the
Private Finance Initiative (PFI) concession contract to design,
construct, finance, maintain and manage the lifecycle costs of
hospital facilities in Tameside for the Tameside & Glossop
Integrated Care NHS Foundation Trust (the "Trust") provides an update regarding
the ownership of certain equity and sub-ordinated debt interests in
the group of which the Company is a member (the "Consort Group") and standstill
arrangements that have been agreed with the Trust.
Change of
Ownership
A call option agreement is in the
process of being agreed in respect of all of the issued shares in,
and subordinated debt issued by, Consort Healthcare (Tameside)
Holdings Limited ("HoldCo",
a holding company of the Group) and Consort Healthcare (Tameside)
Intermediate Limited (an intermediate holding company of the Group
which, together with HoldCo, wholly owns the Company) respectively.
Such agreement provides an option for these instruments to be
transferred to, or to a nominee of, Ambac Assurance UK Limited (the
Controlling Creditor and Bond Financial Guarantor (as defined in
the trust deed for the Notes), "Ambac") for nominal consideration,
which is exercisable at Ambac's discretion.
Short Term
Standstill
Following discussions between the
Trust and Ambac, the Trust has entered into a short-term standstill
agreement with the Company which will expire 1 October 2024 (or
earlier if certain conditions are triggered) and agreed to pay the
unitary charge payment that was due in July 2024. This will provide
a period of time for further discussions to take place and explore
whether a settlement arrangement can be reached. There is no
certainty as to whether such discussions will be successful. If
unsuccessful, there is a high likelihood the Company will enter an
insolvency process.
The Company will provide further
updates to the market in due course.
This announcement is given by the
Company.
Enquiries:
consorttameside@vercitygroup.com
THIS ANNOUNCEMENT CONTAINS
INFORMATION THAT QUALIFIES OR MAY HAVE QUALIFIED AS INSIDE
INFORMATION WITHIN THE MEANING OF ARTICLE 7 OF THE MARKET ABUSE
REGULATION (EU NO. 596/2014), AS IT FORMS PART OF UNITED KINGDOM
DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018,
AS AMENDED.