Publication - FOI/EIR Release

Facility to convert FMEL and BiFab loans to equity: FOI appeal

Published: 22 Feb 2019

Information request and response under the Freedom of Information (Scotland) Act 2002.

Published:
22 Feb 2019
Facility to convert FMEL and BiFab loans to equity: FOI appeal
FOI reference: FOI/18/02803
Date received: 14 Dec 2018
Date responded: 21 Feb 2019
Information requested

 

“(1) Please confirm whether the following loan / loan facilities carry the option to convert the loan into equity:

(A) Ferguson Marine Engineering Limited - £15 million loan facility (granted September 2017)
(B) Ferguson Marine Engineering Limited - £30 million loan facility (granted June 2018)
(C) Burntisland Fabrications Limited (BiFab) - £10 million restructuring loan facility


(2) For each of the loan / loan facilities listed in (1), please state whether the authority to convert the loan in to equity is held:

(A) Jointly by the agreement of the lender and borrower
(B) Solely by the borrower
(C) Solely by the lender”

 

Response

 

With reference to your ongoing appeal with the Scottish Information Commissioner for FoI/18/02803, we have given further consideration to the information previously withheld and have determined that we were not entitled to withhold it and we are now providing you with a response to your question. Please find a formal response below.

Question 1:
(A) There are no debt for equity conversion provisions contained in the £15 million loan agreement with Ferguson Marine Engineering Limited.
(B) There are debt for equity provisions contained in the £30 million loan agreement with Ferguson Marine Engineering Limited.
(C) There are no debt for equity conversion provisions contained in the £10 million loan agreement Burntisland Fabrications Limited.


Question 2:
(A) N/A
(B) N/A
(C) For the £30 million loan agreement with Ferguson Marine Engineering Limited the option to convert debt to equity can be triggered solely by the lender, except in certain potential circumstances relating to a share sale, business disposal or listing.

 

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Contact

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Central Enquiry Unit
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