Northern Rock (2007)
Notes to the accounts [extract]
45. Events after the balance sheet date [extract]
On 10 January 2008, the Company sold its Lifetime mortgage portfolio to JP Morgan at a premium of 2.25% to the balance sheet value. Proceeds of the sale amounted to approximately 2.2bn and were used to reduce the level of the Bank of England facility.
On 22 February 2008 the entire share capital of the Company was transferred to the Treasury Solicitor in accordance with The Northern Rock plc Transfer Order 2008 taking Northern Rock into a period of temporary public ownership. Details of the impact of temporary public ownership are given throughout the Annual Report and Accounts as it affects the Company’s operations and financial disclosures.
On 29 March 2008 the Bank of England and HM Treasury agreed to extend the existing on demand loan facilities as set out in note 28 above to 30 April 2008. On 29 March 2008 the Bank of England and HM Treasury confirmed that they intend to make arrangements to provide an additional committed secured revolving loan reserve facility to the Company in addition to the existing facilities as set out in note 28 above.