In these cases, the termination payment made by the Authority is also based, inter alia, on debt outstandings (SoPC §20.3-20.4).8 The position for Senior Debt is thus similar to that for Authority voluntary termination (cf. §1.3.2).
However, it should be noted that the Authority does not pay future profits, or an amount greater than the Senior Debt outstanding, accrued interest and actual breakage costs9 to the Senior Lenders in these termination scenarios.10
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8 It should be noted that the payment by the Authority on termination for breach of the Refinancing Provisions is the same as that paid on termination for Corrupt Gifts (SoPC §20.6).
9 In case of force majeure termination, compensation is also based on initial share capital and sub-debt less dividends and coupons already paid (SoPC §20.3.2)
10 cf. For capital markets Senior Debt: Office for Government Commerce's "Guidance on Certain Financing Issues in PFI Contracts" (July 2002), §2: "Using The Capital Markets For Finance", §2.12.3.