Snow1964
Established Member
Without the commercial contracts between Rock Rail and train builders, or the Finance agreements or the Leases to SWR, difficult to know the thresholds for conditions to be met, and when regarding transfer and financing.Mixed messaging on that though with Rock Rail seemingly accepting the units as they've charged them as assets against the loans they have in place to purchase the units - why would they do that with Alstom if their customer doesn't want them? Suspect a lot is being suppressed in the background as Rock Rail is at risk of not being able to service its debts if its has no lease income and will have to declare itself insolvent.
It is clear from Rock Rails filed Accounts last year that it was getting compensation income, presumably from Bombardier. Alstom would have inherited the contract so presumably had to continue any late penalty or non performance penalty.
What I don't know is if fixes have been done, or if they have taken some trips on mainline to reach fault free mileage and handover. Or even if contracts have same back to back handover requirements. It could be those financed are now being leased by SWR. I would guess there are hefty penalties for cancellation in the early years to provide a guarantee for those buying the trains that they will get a return on their investment.
Of course DfT will not be impressed if SWR is incurring lease costs for 280 class 701 vehicles, whilst also sub-leasing 707s and paying extension leases (and unplanned repairs) on 455s. Personally I think there must be some looming crisis deadlines, even if it is all hidden from public.