This excerpt taken from the ICI 6-K filed Mar 21, 2007.
The Groups indebtedness and resulting leverage could reduce its operational and competitive flexibility, increase its vulnerability to adverse economic and industry conditions, increase its interest costs and adversely affect results of operations and cash flow and/or financial condition.
The Groups outstanding net indebtedness amounted to £329m as of 31 December 2006. The Groups indebtedness could affect the Group in adverse ways, in particular by requiring the Group to dedicate a significant portion of its operational cash flow to service payments on such indebtedness, and by limiting its ability to borrow additional funds or refinance existing indebtedness on attractive terms. Furthermore, its indebtedness could increase its vulnerability to adverse economic and industry conditions, limit its ability to fund future capital expenditures, research and development and other general corporate requirements, and limit its flexibility to react to changes in its business and the industries in which the Group operates.
In addition, like many other companies, the Group is dependent on its ability to obtain short-term financing to fund a portion of its financing requirements. While the Group has access to £479m in committed and undrawn bank facilities as of 31 December 2006, limitations on the Groups ability to access short-term financing could increase its interest costs and could adversely affect its results of operations, cash flow and/or financial condition.