Coventry & Rugby Hospital Co PLC Statement re Receipt of Payment Deduction Notice (3838F)
11 Novembre 2015 - 3:22PM
UK Regulatory
TIDM51VZ
RNS Number : 3838F
Coventry & Rugby Hospital Co PLC
11 November 2015
ANNOUNCEMENT
THE COVENTRY AND RUGBY HOSPITAL COMPANY PLC - RNS
ANNOUNCEMENT
THE COVENTRY AND RUGBY HOSPITAL COMPANY PLC (the "Issuer")
GBP407,239,000
3.246 per cent. Index Linked guaranteed secured bonds due 30
June 2040
(including GBP35,000,000 variation bonds)
(with authority to issue further bonds)
unconditionally and irrevocably guaranteed as to scheduled
payments of principal and interest pursuant to a financial
guarantee policy
issued by MBIA ASSURANCE S.A. (succeeded by MBIA UK Insurance
Limited)
Receipt of Payment Deduction Notice
On 06 November 2015, the University Hospital Coventry and
Warwickshire NHS Trust (the "Trust") withheld GBP18,079,162.13 +
VAT, from the service payment of GBP21,342,568.18 +VAT, which was
due for payment to the Issuer on 06 November 2015.
The Trust has asserted that the amount withheld was determined
on the basis that the whole of the Trust's site was unavailable
from 30(th) June 2015 for the purposes of the applicable
contractual documentation. The Trust has further asserted that the
amount withheld takes into account the fact that the site continued
to be used by the Trust during the period from this date. The
Trust's assertion that the site was unavailable during the relevant
period is based on certain alleged issues which have been
identified as a result of surveys which have been undertaken at the
University Hospital Coventry and Warwickshire site on behalf of the
Issuer in respect of the Hospital's fire compartmentation. The
Trust alleges that these findings result in a breach of the safety
condition of the Hospital. The Issuer does not accept that the site
was unavailable during the relevant period, and does not accept
that there has been a breach of the safety condition, but is
investigating these alleged issues, with the support of its
subcontractors and fire experts, as a matter of urgency. The Issuer
has received a report from their Fire Safety Experts, Tenos,
confirming that no breach of the safety condition has arisen. This
finding has been corroborated by QC opinion. Therefore the Issuer
has given notice to the Trust that it intends initiate the Dispute
Resolution Procedure.
The Issuer is taking legal advice with respect to the matters
mentioned in this announcement and in light of evidence supporting
that no breach of the safety condition has occurred intends to give
notice to the Trust that it intends to initiate the Dispute
Resolution provisions under the Project Agreement. A further update
on these discussions will be made in due course.
In the meantime, however, holders of the Bonds should be aware
of the circumstances which led to the Trust withholding part of the
service payment which was due for payment in November and the risk
that the Trust may withhold further amounts from future service
payments.
In order to service its debt obligations under the Bonds, the
Issuer is able, subject to certain conditions being satisfied, to
utilise cash standing to the credit of one or more of the reserve
bank accounts created for that purpose under the applicable
contractual documentation.
Enquiries
The Issuer
The Coventry and Rugby Hospital Company Plc
8 White Oak Square
Swanley
Kent
BR8 7AG
Attention: Geoff Dix, Project Co. Representative.
Important information
This announcement is not a prospectus, is distributed for
information purposes only and does not constitute or form part of
any offer or invitation to issue, acquire or dispose of any
securities in any jurisdiction. Nothing in this document is
intended to amount to an invitation or inducement to engage in
investment activity. Nothing in this document amounts to the giving
of advice. If you are in any doubt as to the action you should
take, you should consult a professional adviser.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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