BB. Bradford & Bing

    RNS Number : 5187E
  H M Treasury
  29 September 2008
   



RNS
 
The Chancellor of the Exchequer today announces that, following advice from the Governor of the Bank of England and the Chairman of the FSA,
HM Treasuryis putting in place, with immediate effect, guarantee arrangements to safeguard certain wholesale borrowings, and derivative
transactions of and wholesale deposits with, Bradford & Bingley plc (*Bradford & Bingley*) existing as at midnight on 28 September 2008.
 
Arrangements will be put in place to ensure that Bradford & Bingley will pay an appropriate fee for the provision of these arrangements in
order to ensure it does not receive a commercial advantage.
 
NOTES TO EDITORS:
 
Technical note:
 
These notes set out in further detail the guarantee arrangements announced today by HM Treasury to safeguard certain wholesale borrowings,
and derivative transactions of and wholesale deposits with, Bradford & Bingley.
HM Treasury will ensure that unsecured and unsubordinated wholesale deposits and unsecured and unsubordinated wholesale borrowings, existing
as at midnight on 28 September 2008 (the *relevant time*) and any accumulated interest on them will be repaid when falling due. The
guarantee arrangements also cover unsecured swap and other derivative contracts entered into by Bradford & Bingley existing as at the
relevant time.
 
In respect of all secured derivatives and all wholesale borrowings which are secured and which are existing at the relevant time, HM
Treasury will guarantee the payment obligations of Bradford & Bingley to the extent that those obligations exceed the available proceeds of
the realised security for the relevant derivative or borrowing.
 
Where Bradford & Bingley or the counterparty of Bradford & Bingley may lawfully set off amounts owed by Bradford & Bingley against amounts
owed by the counterparty to Bradford & Bingley or is entitled for any other reason to exercise rights of set-off or similar rights, payments
under the guarantee arrangements will be of the net amount.
 
The guarantee arrangements will cover all unsubordinated borrowings from and wholesale deposits with Bradford & Bingley made by Bradford &
Bingley International Limited (Bradford & Bingley*s Isle of Man subsidiary), and any other unsubordinated debt due from Bradford & Bingley
to Bradford & Bingley International Limited, in each case in existence at the relevant time.
 
Exclusions from scope
 
The scope of the guarantee arrangements means they will not extend to, amongst others, the following liabilities of Bradford & Bingley or
its group:
 
�        covered bonds;
�        securities issued pursuant to Bradford & Bingley*s securitisation programme;
�        subordinated or other hybrid capital instruments;
�        liabilities owed by Bradford & Bingley to its subsidiary companies, save for those obligations referred to above owed to Bradford &
Bingley International Limited;
�        any retail and wholesale deposits with and wholesale borrowing by or other liabilities (including, without limitation, liabilities
pursuant to swap or other derivative transactions) of the subsidiaries of Bradford & Bingley;
�        liabilities of Bradford & Bingley which are not in respect of borrowing or financial indebtedness, for example trade creditors,
salary payments to employees and tax liabilities; and
�        liabilities owed by Bradford & Bingley to the Financial Services Compensation Scheme.
Continuation of the guarantee arrangements
 
The continuation of these guarantee arrangements beyond six months will require the submission and approval of a restructuring plan in
accordance with the European Commission*s Rescue and Restructuring Guidelines. HM Treasury intends to submit such a plan shortly.
 
 
 

This information is provided by RNS
The company news service from the London Stock Exchange
 
  END 
 
MSCEAKNNADXPEEE

Grafico Azioni Bradford & Bingley (LSE:BB.)
Storico
Da Apr 2024 a Mag 2024

Grafico Azioni Bradford & Bingley (LSE:BB.)
Storico
Da Mag 2023 a Mag 2024