Press Releases
28/11/2003
Drax Holdings – Restructuring Update
(London - 28 November 2003) Drax Holdings Limited ("Drax") and International Power ("IPR") announce that they are in discussions following an offer by IPR to increase the discount price for the A-2 debt from 71% to 95% of face value, as part of the cash out offer made available in connection with the schemes of arrangement posted to senior creditors of Drax on 17 November 2003. IPR’s total funding commitment in respect of the A-2, A-3 and B debt amounts remains at £130 million, which for IPR would represent a maximum equity holding of 24% in Drax. The increased discount price for the A-2 debt offered by IPR reflects an improved power price environment.
Both parties remain committed to completing the restructuring within the existing overall timetable.
The Board of Directors of Drax is considering whether the offer is in the interests of the company and its creditors as a whole. There can be no assurance that any amendments will be made to the terms of the existing cash out offer. A further announcement will be made as soon as practicable.
For further information please contact:
| Drax Holdings Limited: | ||
| Buchanan Communications | ||
| Judith Parry | Tel: +44 (0)1943 883990 | |
| Kelly-Ann French | ||
| International Power plc: | ||
| Aarti Singhal | Tel: +(0)20 7320 8681 |
