TIDM40CZ

RNS Number : 4849E

Catalyst Healthcare (Manchester)Fin

09 February 2018

THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF HOLDERS OF THE BONDS. IF HOLDERS OF THE BONDS ARE IN ANY DOUBT AS TO THE MEANING OR IMPORT OF THE CONTENTS OF THIS NOTICE OR REQUIRE FURTHER ADVICE, THEY SHOULD CONSULT THEIR OWN INDEPENDENT PROFESSIONAL ADVISERS (INCLUDING IN RESPECT OF ANY TAX CONSEQUENCES).

Catalyst Healthcare (Manchester) Financing PLC (the "Issuer")

GBP218,050,000, 2.411 per cent. Index-linked Guaranteed Secured Bonds due 2040

(including up to GBP38,000,000 Variation Bonds) unconditionally and irrevocably guaranteed as to scheduled payments of principal and interest pursuant to a bond financial guarantee issued by AMBAC Assurance UK Limited (ISIN XS0208052265) (the "Bonds")

NOTICE

To the holders of the Issuer's Bonds

Alleged Event of Default

Unless otherwise provided, terms defined in the Master Definitions Schedule dated 8 December 2004 (as the same may be amended, varied or supplemented from time to time) shall have the same meaning where used in this Notice.

On 15 December 2004, Catalyst Healthcare (Manchester) Limited ("Project Co") entered into a Project Agreement with Central Manchester University Hospitals NHS Foundation Trust (now Manchester University NHS Foundation Trust) (the "Trust") (the "Project Agreement"), for the financing, design, construction and operation of Central Manchester and Manchester Children's University Hospital (the "Hospital").

On 14 November 2017, there was an electrical outage at the Hospital (the "Power Outage"). During investigations into the Power Outage, an issue was identified with the Hospital's emergency lighting automatic system whereby the system could not always assess whether certain emergency light fittings were working or not (the "Emergency Lighting Issues").

The Power Outage and the Emergency Lighting Issues will be referred to in this Notice as the "Power Issues".

On 16 January 2018, the Trust issued notice of a Project Co Event of Default in respect of the Power Issues. The Trust has asserted that if Project Co fails to rectify the Project Co Event of Default or if it fails to provide a reasonable remedial programme then it has the right to terminate the Project Agreement and/or the relevant supply-chain contract.

Project Co and Project Co's Hard Facilities Management Contractor, Sodexo Limited ("Sodexo"), dispute that a Project Co Event of Default has occurred in relation to the Power Issues and do not consider that the Trust has any right to terminate the Project Agreement and/or the relevant supply-chain contract.

Project Co and the Issuer have been working (and are continuing to work) with the Trust and Sodexo in order to resolve the Power Issues, which includes finalising an appropriate remedial programme, a draft of which had been produced before the Trust chose to allege that a Project Co Event of Default had occurred.

Project Co and the Issuer are hopeful that matters will be resolved between the parties shortly.

Project Co and the Issuer continue to take legal advice with respect to the matters mentioned in this Notice and will keep the matter under continual review.

A further update will be given in due course.

Enquiries

If you have any enquiries, please direct them to the Issuer

The Issuer

Catalyst Healthcare (Manchester) Financing PLC

c/o Albany SPC Services Limited,

3rd Floor,

3-5 Charlotte Street,

Manchester,

M1 4HB

Attention: Ailison Mitchell

The Principal Paying Agent

The Bank of New York Mellon,

International Corporate Trust Services,

Merck House, Seldown,

Poole, Dorset,

BH15 1PX

The Bond Trustee

Law Debenture Trustees Limited

Fifth Floor, 100 Wood Street,

London

EC2V 7EX

This notice is given by Catalyst Healthcare (Manchester) Financing PLC

09 February 2018

This information is provided by RNS

The company news service from the London Stock Exchange

END

CIRBSGDDSBGBGIC

(END) Dow Jones Newswires

February 09, 2018 10:48 ET (15:48 GMT)

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