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This excerpt taken from the ICI 6-K filed Mar 21, 2007. Related Party Disclosures, as comprising material transactions with
related parties during 2006.
Related party: IC Insurance Limited and its subsidiaries Transaction: Funds on deposit with ICI Finance PLC amounting to £10m (2005 £10m) Related party: ICI Pensions Trustee Limited Transaction: In recognition of a deficit for funding purposes of £657m and a funding ratio of 90.9% as at 31 March 2005 identified as a result of the completion of the valuation of the ICI UK Pension Fund (the “Fund”), the Company agreed to make “top-up” contributions to the Fund over nine years, comprising annual payments of £122m for the first four years, from 2006 to 2009, and annual payments of £62m for the following five years, from 2010 to 2014. As from September 2004, the Company has also provided an asset-backed guarantee, via a wholly owned subsidiary, ICI Receivables Funding Limited (the “SPV”) specifically incorporated to provide the guarantee, for £250m to be secured by way of fixed and floating charge over the receivables of certain Group companies which have been assigned to the SPV and by way of cash and cash equivalents deposited with the SPV. At 31 December 2006, £228m (31 December 2005 £268m) of trade debtors and £57m (31 December 2005 £5m) of cash and cash equivalents were assigned to the SPV. Related party: ICI Specialty Chemicals Pensions Trustee Limited (the “Trustee”) Transaction: In recognition of a deficit for funding purposes of £95m and a funding ratio of 71.2% as at 31 March 2005 identified as a result of the completion of the valuation of the ICI UK Specialty Chemicals Pension Fund (the “Fund”), the Company agreed to make “top-up” contributions to the Fund over ten years, comprising annual payments of £12.3m, from 2006 to 2015. Key terms have been agreed between the Company and the Trustee as to the re-apportionment of any debt arising by virtue of section 75 of the Pensions Act 2004 relating to the sale of Quest International Flavours and Fragrances Ltd (“Quest Ltd”). Both parties have agreed that the Fund Trust Deed will be amended to permit the Trustee to re-apportion section 75 debts arising on the cessation of membership of the Fund by participating employers. An amount of £1,000 will be payable by Quest Ltd once it ceases to be a participating employer, and the remaining section 75 debt arising on the sale of Quest Ltd will be re-apportioned between the Company and the remaining participating employers. In consideration of the agreement, the Company will provide the Fund with an amount to increase the Fund’s assets up to full funding on an IAS 19 |
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