2005 Annual Report - Touax

Financial information concerning the assets,
financial position and results of the issuer
With effect from 1 January 2008 until the expiration
of the contract on 31 December 2012, the Group will
sell the modules at best on the secondhand market
in accordance with the marketing authorization that
it has signed with GIE Modul Finance I.
The proceeds from the sale of equipment will be
used to:
2 pay the residual value of the senior debt as at
31 December 2009: €9.146 million
2 pay the residual value of the junior debt as at
31 December 2010: €2.286 million
2 pay holders of redeemable subordinated securities,
in the final year of the contract, a cash flow in
addition to the payments received since 31 March
2001, up to a maximum annual actuarial yield of
10%. The surplus income from the disposal of the
modular buildings will then be divided between the
Group and the arrangers of the renegotiated debt in
a proportion of 95% for the Group and 5% for the
arrangers.
GIE Modul Finance I is authorized to terminate the
management contract early in the event of failure to
pay in full or in part an installment of the senior and
junior debt repayment schedule due to inadequate
distributable net rental income.
Should GIE Modul Finance I default, the lenders may
decide to sell the equipment or change operators.
To avoid default on the part of GIE, the Group has the
right, but not the obligation, to advance to it the
amounts required to cover the senior debt repayment
schedule. These advances shall be repaid to
the Group from the surplus resulting from the difference
between Distributable Net Leasing Income
and the repayments of the senior and junior debt
over the following quarters, as a priority once the
Distributable Net Leasing Income again exceeds the
senior and junior debt repayment schedule.
The operation of modular buildings by GIE Modul
Finance I has the following impact on the financial
statements of the Group (in € thousands):
IN THE CONSOLIDATED INCOME STATEMENT
(€ thousands) 31.12.2005 31.12.2004
Leasing revenues from equipment belonging to GIE 6,019 6,094
In consolidated revenues 6,019 6,094
Flat-rate operating expenses on equipment belonging to the GIE (b) (2,408) (2,438)
In purchases and other consolidated external expenses (2,408) (2,438)
Net leasing revenues due to the GIE (2,383) (2,417)
In consolidated leasing revenues due to investors (2,383) (2,417)
TOTAL (a) 1,228 1,239
(a) The total comprises management commissions received by the Group for the management of equipment belonging to the GIE.
(b) The operating expenses are allocated on a flat-rate basis, not on the basis of individual items of equipment.
annual report 2005
90
Consolidated accounts