Catalyst Healthcare (Manchester)Fin Statement re withdrawal alleged event of default (2621B)

TIDM40CZ

RNS Number : 2621B

Catalyst Healthcare (Manchester)Fin

05 June 2019

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

Withdrawal of 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").

As previously notified on 9 February 2018, there was an electrical outage at the Hospital on 14 November 2017 (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 asserted that if Project Co failed to rectify the Project Co Event of Default or if it failed to provide a reasonable remedial programme then it had 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 had occurred in relation to the Power Issues and do not consider that the Trust had any right to terminate the Project Agreement and/or the relevant supply-chain contract.

Project Co and the Issuer have worked with the Trust and Sodexo so that the Power Issues have now been resolved to the satisfaction of all parties. As a result, the Trust has now confirmed that it is no longer claimed that there is a Project Co Event of Default in relation to the Power Issues.

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

5 June 2019

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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