CLOSE BROTHERS CORPORATE FINANCE TAKES RESTRUCTURING DEAL OF THE YEAR AWARD 2003

Close Brothers Corporate Finance, a leading European independent corporate finance advisor, has been presented the Acquisitions Monthly Award for 'Restructuring Deal of the Year 2004' for its work on the restructuring of AES Drax, the largest coal-fired power station in Europe.

Close advised the Senior Secured Bondholders of AES Drax, and designed and orchestrated the restructuring which provided a market-based solution to all secured creditors and led to the installation of independent management for the future running of the plant.

Commenting on the Award, Stephen Aulsebrook, CEO and Head of the European Special Situations Group at Close Brothers Corporate Finance said:

"We are delighted to have received this accolade. The Drax restructuring provided an exit strategy for lenders in a complex project finance structure and importantly financial flexibility for the new independent plant. This is particularly relevant at a time when the power sector is poised for consolidation.

"Close has advised on a number of significant deals in the energy sector, but this is certainly one of the most complex and we are proud of its success."

Close assessed the optimum capital structure of the plant and negotiated a complex balance sheet restructuring that provided optionality through a cash alternative for those creditors not wishing to remain in the credit post completion. It also offered equity interest in the stapled subordinated debt tranches.

In addition Close was instrumental in providing a new independent management board. It also orchestrated a competitive public auction which ensured value maximisation and increased certainty through the restructuring by attracting interest from trade counterparties.

For more information:

Close Brothers Corporate Finance
Justin Clark - 020 7655 3784