REG - Consort Hlth.T'side - Circ re. standstill and ownership

Ambac FinancialAnnouncement

31/07/2024 16:15

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RNS Number : 6414Y  Consort Healthcare (Tameside) PLC  31 July 2024

 

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.

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