VauxhallNova
Member
FirstGroup plc (‘FirstGroup’ or the ‘Group’) has reached agreement with the Department for Transport (‘DfT’) on the termination fee payable for the TransPennine Express (‘TPE’) train operating company. As previously indicated, a condition of the Emergency Recovery Measures Agreements (‘ERMA’) put in place by the DfT to provide continuity for rail passengers and the industry during the coronavirus pandemic was that train operators and the DfT would work to agree whether any payment is required to terminate the pre-existing franchise agreements, and if so how much, based on a pre-coronavirus trajectory financial model. The DfT and FirstGroup have now agreed the financial impact of the termination for TPE which requires a further FirstGroup contribution of c.£6m, over and above the £42.5m already paid into the operating company. The DfT has extended the TPE ERMA term until 19 September 2021, following their conclusion that no event of default would have taken place had the pandemic not occurred, although DfT and the Group are working collaboratively with a view to entering into a National Rail Contract in advance of that date
Link is below
https://otp.tools.investis.com/generic/regulatory-story.aspx?newsid=1475041&cid=858
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