Drax

Jonathan Walker and James Ruane were instructed to act on the 2005 restructuring of Drax’s £1.040 billion debt. The deal concluded successfully on 15 December 2005 with the Drax’s shares listed on the London Stock Exchange and significantly reduced debt levels. The total debt involved amounted to over £2.4 billion

Drax is the largest coal-fired power station in Western Europe, a strategic resource capable of supplying 7% of Britian’s electricity. The story of Drax’s financial difficulties goes back several years, but in 2003 a restructuring of Drax’s debt became critical.

In 2003 Mourant du Feu & Jeune was selected to advise on all Jersey law aspects of the transaction, with five separate teams instructed by the various transaction counsel.

Since the 2003 restructuring Drax’s financial position has improved significantly, culminating in the 2005 deal which again saw Mourant du Feu & Jeune instructed by all sides. The turnaround in the financial fortunes of Drax has been widely reported.

December 2005