Railtrack Group PLC "Railtrack Group" - Suspension of Shares Government Appointment of Administrator to Railtrack PLC.Business Editors LONDON--(BUSINESS WIRE)--Oct. 8, 2001 Key Points -- Administrators Appointed Following Removal of Government Financial Support -- Funding Available to Ensure Operation of Rail Network -- Safety Will Retain Its Existing Priority -- Rights of Railtrack Plc Employees Unaffected by Administration -- Trading of Shares Suspended -- Directors Will Pursue All Means Available to Ensure Interests of Creditors are Protected and Value for Shareholders is Maximised to Fullest Possible Extent At approximately 1700 hours on Friday Friday: see Sabbath; week. Friday young Indian rescued by Crusoe and kept as servant and companion. [Br. Lit.: Robinson Crusoe] See : Servant , October October: see month. 5, 2001, the Secretary of State informed the Chairman of Railtrack The references in this article would be clearer with a different and/or consistent style of citation, footnoting or external linking.
tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. part of the group, Railtrack PLC, beyond that envisaged in the regulatory settlement. The Secretary of State subsequently petitioned the High Court to appoint an administrator for Railtrack PLC under the Railways Act 1993. The Secretary of State's petition for administration was heard at 1700 hours on Sunday Sunday: see Sabbath; week. , October 7, 2001 and partners of Ernst & Young were appointed as Railways Administrator with immediate effect. Railtrack PLC was not in a position to oppose this petition given the Government's decision to provide no further financial support beyond that envisaged in the regulatory settlement. Railtrack PLC therefore, reluctantly accepted that there was no credible alternative to administration. The Directors regret that the Government felt compelled to take this action and to withdraw its support which has been fundamental to the financial viability of the group since privatization privatization: see nationalization. privatization Transfer of government services or assets to the private sector. State-owned assets may be sold to private owners, or statutory restrictions on competition between privately and publicly owned . Nevertheless, the Directors of Railtrack PLC have been advised by Government that funding is available to the administrator to ensure the continuation of the operations of the rail network. The Directors will co-operate with the administrator fully in the operational management of Railtrack PLC to ensure that the network is not affected and that confidence is maintained. In view of these developments, and the uncertainty of the eventual outcome on Railtrack Group, the Directors have requested the suspension of the listing of Railtrack Group shares on the London Stock Exchange London Stock Exchange London marketplace for securities. It was formed in 1773 by a group of stockbrokers who had been doing business informally in local coffeehouses. and that trading be suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. with immediate effect. The status of the trading of the listed bonds and convertible bonds of Railtrack PLC is now a matter for the administrator to decide. The Directors refer shareholders and creditors to the announcement by the Government issued today, which sets out the intentions of the Government with regard to the shareholders, trade and financial creditors and other stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. in Railtrack PLC. By way of background, shortly after the appointment of John Robinson as Chairman in June June: see month. 2001, Railtrack Group and its financial advisers, Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , entered into discussions with the Department of Transport, Local Government and the Regions with a view to agreeing a means by which a more secure financial framework could be created which would allow Railtrack PLC to focus on improved service to customers, enhanced safety and greater efficiency while providing an appropriate framework to build shareholder value over the medium to long term. These discussions continued until the end of last week with no indication from the Government that it intended to take the actions which have now transpired. In view of the suddenness of the Government's decision, the Board has not had the opportunity to fully assess the consequences of administration of Railtrack PLC on the remainder of the group and have appointed Deloitte and Touche to advise on this. The Directors of Railtrack Group are currently considering what steps should be taken with respect to the other companies in the group. The value remaining in Railtrack Group's shares following implementation of the administration will be dependent on the value realized for the group's principal asset, Railtrack PLC, by the administrator and on the value of its other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. . The Directors have been pursuing and will continue to pursue all means available to them to ensure that the interests of creditors are protected and that value for shareholders is maximized to the fullest extent possible. The Board also understands that the administrator has a duty to protect the interests of both the shareholders and the creditors. The Company has been informed by representatives of the Government that the employment rights of Railtrack PLC employees will be unaffected by the administration. Further details of the Government's proposals with regard to employees are contained in the press release issued today by the Secretary of State. Commenting on the appointment of the Railway Administrator, John Robinson, Chairman of Railtrack Group said: "I was appointed chairman of Railtrack at a time of great operational, managerial and financial stress for the group, following an onerous on·er·ous adj. 1. Troublesome or oppressive; burdensome. See Synonyms at burdensome. 2. Law Entailing obligations that exceed advantages. and, in the light of the Hatfield Hatfield, town (1991 pop. 33,174), Hertfordshire, SE England. Hatfield was designated one of the new towns in 1948 to alleviate overpopulation in London. The plans for this new town were coordinated with those of nearby Welwyn Garden City. accident, unrealistic periodic review settlement. "In the light of the increased investment required to safely operate the railway and continuing cost pressures on certain major projects the Directors recognized the need for a complete review of the financial position of the group and appointed new financial advisers to facilitate this. The Board believes that the proposal it put to the Government following that review would have enabled Railtrack to continue to obtain finance from the private sector, provide a framework to build shareholder value while at the same time facilitating an increase in customer service and providing enhanced safety. "Until last Friday evening we believed that the Government was giving serious consideration to the Board's proposal. It has now been made clear to us that the Government has decided not to provide further financial support to Railtrack in its current form. The Directors are extremely mindful mind·ful adj. Attentive; heedful: always mindful of family responsibilities. See Synonyms at careful. mind of their duty to protect the interests of shareholders and creditors, but under current circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , and recognizing the duty of the administrator also to act in the interest of both the shareholders and the creditors, we have concluded that we should co-operate with the administrator in ensuring a smooth transition. "The Directors are grateful for the ongoing commitment all employees have shown to the company. This is showing through in real delivery - infrastructure performance delays are sharply down in recent months and industry co-operation is improving. "The Government has given its assurance that the rights of all employees will be safeguarded. The Directors encourage all staff to work with the executive management team and to co-operate with the administrator to ensure the continued operation of a safe, reliable railway." A further announcement will be made in due course. For more information please contact the Railtrack press office on 020 7557 8292 or The Maitland Maitland, city (1991 pop. 45,209), New South Wales, SE Australia, on the Hunter River. It is a railroad junction and agricultural center with light manufacturing. Maitland began as a convict settlement in 1824. The river has flooded in 1893, 1949, and 1955. Consultancy on 07774 250811 or 07769 710335 All recent press releases can be found on the Railtrack web site www.railtrack.co.uk Recent press releases can be found on the Railtrack web site at the following address: http://www.railtrack.co.uk/corporate/notice |
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