LONDON - Coventry and Rugby Hospital Company PLC announced today that it has extended its standstill agreement related to a bond dispute until June 30, 2025. This extension follows a prior arrangement that was set to expire on December 31, 2024, and involves the company's £407.2 million index-linked secured bonds due in 2040.
The standstill agreement is part of ongoing adjudications addressing disputes over the Adjusted Estimated Fair Value of the Agreement (AEFVA) and the reporting of deductions between University Hospitals Coventry and Warwickshire Partnership National Health Service Trust and the Coventry and Rugby Hospital Company PLC. The adjudicator has prepared interim decisions, which will not be released until the standstill period concludes.
The original standstill agreement, which was consented to by Assured Guaranty (NYSE:AGO) UK Limited, the guarantor of the bonds, was designed to allow the adjudicator to make decisions on two separate adjudications simultaneously without releasing them unless requested by either party. No such request was to be made before December 31, 2024, barring specific circumstances outlined in the agreement.
Additionally, a related standstill agreement between the Coventry and Rugby Hospital Company PLC and the University Hospitals Coventry and Warwickshire Partnership NHS Trust, dated July 19, 2024, was set to expire on December 31, 2024. This agreement has also been extended, now set to end on July 31, 2025.
The Coventry and Rugby Hospital Company PLC's bonds, issued with a 3.246% interest rate and due on June 30, 2040, are unconditionally and irrevocably guaranteed by Assured Guaranty UK Ltd. The extension of the standstill agreement ensures that the adjudication decisions will remain undisclosed until at least the end of the extended standstill period.
The company has made it clear that this announcement is not an offer or invitation to buy or sell any securities and advises bondholders and interested parties to seek independent professional advice if necessary. This information, based on a press release statement, is provided by RNS, the news service of the London Stock Exchange (LON:LSEG).
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