Source - RNS
RNS Number : 9607J
Honours PLC
15 September 2016

(the Issuer)
(Incorporated in England and Wales with registered number 03702189 and having its office at Third Floor, 1 King's Arms Yard, London EC2R 7AF)


To the holders of those of the:
£291,950,000 Class A1 Asset Backed Floating Rate Notes due 2029 (ISIN: XS0273149962)
£54,200,000 Class A2 Asset Backed Floating Rate Notes due 2029
(ISIN: XS0273152677)

£33,350,000 Class B Asset Backed Floating Rate Notes due 2029 (ISIN: XS0273153998)

£18,000,000 Class C Asset Backed Floating Rate Notes due 2029 (ISIN: XS0273156587)

£11,950,000 Class D Asset Backed Floating Rate Notes due 2029 (ISIN: XS0273158443)

£8,750,000 Class E Asset Backed Floating Rate Notes due 2029 (ISIN: XS0273159250)

of the Issuer presently outstanding
(the Noteholders and the Notes respectively).


NOTICE IS HEREBY GIVEN to the Noteholders that:

(i) on 16 February 2016 Link Financial Outsourcing Limited (Link) was appointed to assist the Issuer with preparation and implementation of a remediation plan;   

(ii) the cost associated with migration of the portfolio, the replacement of the previous Administrator, Capita Customer Management Limited (Capita), following their resignation, and the appointment of Link to assist the Issuer with remediation and the ongoing preparation of the remediation plan, have been contributing to the increased cost of running the transaction. The cost of the migration has now been paid except a small sum being paid monthly until February 2019. The costs agreed to date for the pre-implementation phase of the remediation have been paid  on a monthly basis with the last instalment paid in July 2016.  The Issuer will confirm the total cost of remediation once the remediation plan has been finalised and agreed with the FCA;

(iii) the change in Administrator has led to an on-going review in relation to the way the loan information is collated for inclusion in the investor reports so that it can be provided on a consistent basis going forward.  This has resulted in an increase in the value of loans overdue for more than 24 months but the Issuer believes these changes will allow the transaction to be reported on a consistent basis going forward;

(iv)       following requests received by the Issuer for additional information it has been proposed that a new stratification table be included in the investor report to show the loan categories by year of graduation.  The Issuer has requested that the Administrator looks to develop such a report so that this can be included on a consistent basis in future investor reports;

(v)        the Administrator has informed the Issuer that due to the number and complexity of the data requests made to the previous Administrator, Capita, and the interpretation and application of external advice on the matter, the deadline for the implementation of the remediation plan will be delayed. Initially it was expected that the remediation plan would be finalised and implemented before 31 August 2016. Further update as to the delivery and implementation of the remediation plan will be given to the Noteholders in due course; and

(vi)       Noteholders should note that the provision in the Issuer's financial statements for the year ended 31 March 2015 for the remediation exercise of approximately £10 million was determined and provided for based on information and advice available at that time in accordance with International Financial Reporting Standards.  No cash provision is maintained by the Issuer in respect of the remediation exercise.  In order for the Issuer to consider all of its options as to the recovery of the cost of remediation the Issuer needs to have a clear understanding of the quantum at stake. This can only be determined once the remediation plan is finalised and the Issuer will notify the Noteholders as soon as it is possible.

Capitalised terms in this notice shall, except where the context otherwise requires and save where otherwise defined herein, bear the meanings ascribed to them in the Transaction Master Definitions and Framework Deed between, inter alios, the Issuer and the Security Trustee dated 10 November 2006, copies of which are available for inspection during usual business hours at the offices of the Issuer set out below.

This Notice is given by:

Honours PLC

Third Floor

1 King's Arms Yard

London EC2R 7AF


Attention:          The Directors

Telephone:        +44 (0) 20 7397 3600

Fax:                  +44 (0) 20 7397 3601

e-mail:              [email protected]

Ref:                  Honours PLC


Dated: 13 September 2016

This announcement has been issued through the Companies Announcement Service of
The Irish Stock Exchange

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