Coventry & Rugby Hospital Co PLC Notice of Adjudication (2093B)
10 February 2022 - 3:34AM
UK Regulatory
TIDM51VZ
RNS Number : 2093B
Coventry & Rugby Hospital Co PLC
09 February 2022
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 Assured Guaranty
(UK) Ltd)
Warning Notices and Service Failure Points
In reference to the Project Agreement between University
Hospitals Coventry and Warwickshire National Health Service Trust,
Coventry Primary Care Trust (succeeded by Coventry and Warwickshire
Partnership Trust) and The Coventry and Rugby Hospital Company Plc,
dated 3 December 2002, as amended from time to time and the
Collateral Deed between The Coventry and Rugby Hospital Company
Plc, The Coventry and Rugby Hospital Company (Holdings) Limited,
Mourant & Co. Capital Trustees Limited (succeeded by Apex
Corporate Trustees (UK) Ltd) (As Security Trustee and Bond Trustee
) and MBIA Assurance S.A. (succeeded by Assured Guaranty (UK) Ltd),
dated 3 December 2002. Unless otherwise defined herein, capitalised
terms have the same meaning as given to them in the Project
Agreement and Collateral Deed.
On 23 December 2021 the Issuer, its Hard FM subcontractor Vinci
Construction UK Ltd and Coventry and Warwickshire Partnership Trust
("CWPT") (together the "Standstill Parties") entered into a
Standstill Agreement relating to alleged failures. The Standstill
Parties agreed that they will enter into discussions regarding the
issues with the intention of resolving these during the Standstill
Period. The Standstill Agreement also varied the terms of the
Dispute Resolution Procedure as set out in the Project Agreement in
relation to these issues.
On 31 January 2022, CWPT served a Notice of Adjudication to the
Issuer in relation to the Dispute regarding the failures. The Trust
is seeking a determination of the Deductions and Service Failure
Points ("SFPs") between October 2020 and November 2021 relating to
the alleged failures. In addition, they also seek a determination
on whether a Project Co. Event of Default has occurred under the
Project Agreement and whether the Trust therefore has a right to
terminate this element of the Project Agreement. CWPT payments
equate to approximately 8% of the total Unitary Payments. The
Standstill Parties will follow the timetable set out in the
Standstill Agreement in respect of this Adjudication.
Financial Obligations
CWPT has made deductions from its Unitary Charge payments in
relation to these alleged maintenance failings. However, the Issuer
fulfilled its Scheduled Senior Debt Service obligations on 31
December 2021, without the need to utilise cash standing to the
credit of available reserve bank accounts. The Issuer expects to be
in a position to meet its next Scheduled Senior Debt Service
obligations, due on 30 June 2022, as well as all future Scheduled
Senior Debt Service obligations, without recourse to such available
reserve bank accounts.
Enquiries
The Issuer
The Coventry and Rugby Hospital Company Plc
8 White Oak Square
Swanley
Kent
BR8 7AG
Attention: Jacques Mostert, Project Co. Representative.
Important information
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information purposes only and does not constitute or form part of
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of advice. If you are in any doubt as to the action you should
take, you should consult a professional adviser.
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