iesy Repository GmbH - Irish Stock Exchange

COURTESY TRANSLATION FROM THE GERMAN LANGUAGE
FOR INTERPRETATION, THE GERMAN TEXT SHALL PREVAIL
KABELNETZ NRW HoldCo GmbH, Cologne
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR FINANCIAL YEAR 2004—(CONTINUED)
The personnel accruals in the amount of EUR 19,176k mainly comprise accruals for staff retention.
The accruals for services of EUR 11,546k is related to goods and services already delivered but not yet invoiced.
The accruals for cable operating costs mainly comprise leasing expenses for cable, glass fibre cable, cable ducts and
GEMA-fees.
In order to hedge a portion of the interest rate risk arising from the drawdowns with variable interest made within the
scope of the Senior Credit Agreement, Swap contracts were concluded with three banks in the financial year 2001. The total
notional amount of the Swap contracts is EUR 255,000k. The pending loss arising from the valuation of these hedge
contracts by banks as per the balance sheet date was accrued in the amount of the negative fair value of EUR 9,023k that was
calculated by the banks in accordance with generally accepted valuation methods.
The accruals for contractual risks relate to risks from contractual disputes with third parties.
Liabilities
The following schedule of liabilities shows liabilities by their respective due dates:
368
Total
within
one)
year
Thereof due
between
one and five
years
in more
than five
years
EUR k EUR k EUR k EUR k
Liabilities to banks 583,273 0 583,273 0
Trade payables 8,993 8,993 0 0
Capital lease liability 383,070 8,191 39,635 335,244
Other liabilities 117,831 42,831 75,000 0
1,093,167 60,015 697,908 335,244
Included in liabilities due to banks is a loan of EUR 583,273k which derives from the Senior Credit Facility, which was
renegotiated during the restructuring of ish KG in 2002, with a lender consortium of which Citibank International Plc. is
agent.
The total amount consists of two tranches, EUR 518,273k of non-elevated secured debt and EUR 65,000k (original
amount: EUR 115,000k) of elevated secured debt. On December 15, 2004 a voluntary repayment in the amount of EUR 50
million was made on the elevated secured debt. Both tranches have interest of 3% over LIBOR and are due upon the earlier
October 1, 2006 (“Exit Event”) or of the sale of ish or refinancing.
Liabilities due to banks from the Senior Credit Facility are secured by the entire fixed and current assets of ish KG.
The Senior Credit Facility contains certain restrictions regarding operational and financial issues. These include
limitations on the sale of assets, on the occurrence of additional debt, on dividends to shareholders, on certain investments
and acquisition. Additionally, the agreements require the satisfaction of certain financial covenants.