Last checked at 17 Jan 2018 08:15
Aspire Defence Finance plc (the "Company"), the Issuer for Project Allenby/Connaught ("the Project"), notes the recent announcement by Carillion plc ("Carillion") regarding its compulsory liquidation.
The Project continues to deliver services as normal.
Carillion does not perform any of the services required for the Project. Carillion and KBR each have a 50% interest in two unincorporated joint ventures acting as sub-contractors to Aspire Defence Limited, the special purpose vehicle for the Project, known as Aspire Defence Capital Works and Aspire Defence Services, and a 50% interest in a supplier to Aspire Defence Services called Aspire Defence Services Limited delivering facilities management services. Carillion and KBR are guarantors of the liabilities of those three sub-contractors. Commercial arrangements exist to ringfence the sub-contractors from their parent companies.
Carillion seconds approximately 110 management and supervisory staff to Aspire Defence Capital Works, the sub-contractor responsible for the Army Basing Programme Works ("ABP Works"). The construction of the ABP Works is not performed by Carillion. Construction delivery is also progressing as normal.
The Company has been monitoring Carillion's situation for some months and has activated its pre-prepared contingency plan. The Company is working in conjunction with all stakeholders, particularly KBR, to mitigate any effects of Carillion's liquidation on the Project. KBR has been undergoing contingency planning for the last three months and is well placed to continue operating these sub-contracts.
The Company will continue to manage the situation as it develops, including considering carefully the terms of the finance documents, and provide further updates as appropriate.
By order of the Board,
A R McColl
Company Secretary
17 January 2018