LONDON - Consort Healthcare (Tameside) PLC has announced a settlement with the Tameside & Glossop Integrated Care NHS Foundation Trust and Equans Services Limited. This agreement resolves claims and amends the terms of the Project Agreement for hospital facilities in Tameside.
The settlement, effective from December 2, 2024, includes a payment by Consort to the Trust, which will be offset by reduced monthly service payments. The Trust waives financial claims prior to the settlement date and discontinues the restructuring plan proceedings from April 2024. Consort will also undertake rectification works at the hospital site.
Additionally, the Project Agreement has been amended to incorporate a fast-track dispute resolution procedure and clarify terms related to Necessary Works completion times and termination conditions.
Consort confirms it had adequate funds for debt service in September 2024 but reserve accounts are now fully drawn or at minimal levels. Financial forecasts suggest gradual replenishment of these accounts over several years. Discussions with the Bond Financial Guarantor and Controlling Creditor, Ambac Assurance UK Limited, are ongoing to address potential covenant breaches due to the settlement and necessary works costs.
The financial outlook, however, remains uncertain with various factors, including work costs and timelines, influencing future cover ratios.
This news is based on a press release statement by Consort Healthcare (Tameside) PLC.
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