Statement re Northern Rock

RNS Number:5602O
H M Treasury
22 February 2008


H M Treasury

22 February 2008


Northern Rock plc

1.     The Treasury announces that it has today acquired all the shares in
Northern Rock, including its preference shares, and that all share options and
other entitlements to shares issued by the company have been extinguished by a
Transfer Order made under the Banking (Special Provisions) Act 2008, the Act
having now received Royal Assent.  The Transfer Order came into force, and the
transfers under it were made at, 00:01 on 22 February 2008.

2.     The listing of the company's ordinary and preference shares on the
Official List of the UK Listing Authority and admission of its shares to trading
on the London Stock Exchange have been cancelled.  The company's debt
securities, which are not transferred, will continue to trade.

3.     The company continues to be open for business as usual for its customers
and the Government's guarantee arrangements remain in place.  Depositors' money
remains safe and secure.

4.     Temporary public ownership and the de-listing of Northern Rock's shares
have no effect on the rights or obligations of lenders, bondholders, swap
counterparties, suppliers or other counterparties of Northern Rock, except for
modifications principally aimed at ensuring that arrangements continue as before
and that the transfer does not trigger additional payments or other obligations
in consequence.  

5.     Ron Sandler and Ann Godbehere have today joined the board of Northern
Rock as new Executive Chairman and new Chief Financial Officer respectively.

6.     The Banking (Special Provisions) Act 2008 provides for an Order to set up
a compensation scheme under which an independent valuer will assess any
compensation which may be payable to holders of shares transferred to the
Treasury and certain other affected parties.  An Order will be laid before
Parliament shortly establishing the compensation scheme.  The principles for
assessing any compensation, set out in the Act and to be supplemented in the
Compensation Scheme Order, reflect the principle that the Government should not
be required to compensate shareholders for value which is dependent on
taxpayers' support. 





                      This information is provided by RNS
            The company news service from the London Stock Exchange

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