FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For January 15, 2003
Commission File Number: 000-30932
REGUS PLC
(Translation of registrant's name into English)
3000 Hillswood Drive
Chertsey KT16 0RS
England
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F X Form 40-F
______ ______
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(7): _____
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No X
_______ _______
If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- _____
REGUS PLC
INDEX TO EXHIBITS
Item
1. Press release dated January 15, 2003
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: January 15, 2003
REGUS PLC.
By: /s/Stephen Stamp
Name: Stephen Stamp
Title: Group Finance Director
Item 1
REGUS
REGUS ANNOUNCES PLAN TO RETURN U.S. BUSINESS TO PROFITABILITY
Issued at 0700 hrs GMT Wednesday 15 January 2003
As part of a plan to reorganise its US business and return it to profitability,
Regus Group, the world's largest provider of serviced offices, today announces
that its US subsidiary, Regus Business Centre Corp ("Regus US"), has filed a
voluntary petition for relief under Chapter 11 of the US Bankruptcy Code in the
Court of the Southern District of New York. Regus plc and Regus Business Centre
BV, which are the holding companies for the Regus Group, have both given
guarantees in relation to the leasehold liabilities of the US business and are
therefore also filing for relief under Chapter 11.
The Regus Group, which operates across 52 countries, is generating cash outside
the United States and this move is expected to strengthen the Group's financial
position further. In addition, the Group raised up to (pound)57 million in
December from the sale of a part of its UK business and some of the proceeds of
that sale will help fund this Chapter 11 process. As a result, Regus does not
expect that it will require further funding to complete the reorganisation.
The limited purpose of this Chapter 11 is to allow the Regus Group to reorganise
certain property leases entered into by its US business and the related
guarantees given by Regus plc and Regus Business Centre BV in respect of those
leases. Over recent months, Regus US has sought to restructure the terms of its
leases and related guarantees through negotiation with US landlords. Despite
substantial progress towards a negotiated settlement, the Regus Group has not
been able to reach a satisfactory settlement with US landlords within the
necessary timeframe and has now decided to file for Chapter 11 as a means of
achieving a statutory settlement with those landlords. However, the Chapter 11
process will not affect the Group's ability to maintain its normal business
operations, to do business with customers and suppliers and to provide employees
with salaries and benefits as normal.
The listing and trading of Regus' shares on the London Stock Exchange will not
be affected by this move.
Other leading companies that have used the Chapter 11 process to reorganise and
return to competitiveness include Texaco, Continental Airlines, Toys "R" Us,
Flag Telecom and Macy's.
"Regus is wholly committed to its global strategy in which the US market is a
key component. Our clear objective is to return our US business to profitability
and Chapter 11 is now the quickest and most reliable route to secure this", said
Mark Dixon, Chief Executive Officer of Regus. "As a result of the recent sale of
part of our operations in the UK, we are in the position to be able to fund a
reconstruction of our operations in the US and our objective is for the US
business to be capable of generating profits when it emerges from Chapter 11. We
are most grateful for the support that we have received from our customers,
employees and landlords in the US as well as the other communities we serve."
Enquiries:
Regus PLC Tel: 01932 895138
Mark Dixon, Group Chief Executive Officer
Stephen Stamp, Group Finance Director
Stephen Jolly, Group Communications Director
Financial Dynamics Tel: 020 7831 3113
David Yates / Richard Mountain
INFORMATION ON REGUS FILING
Chapter 11 gives each Regus company which has filed for Chapter 11 legal
protection from its US creditors so that it can restructure its US leasehold
portfolio whilst at the same time continuing its day-to-day operations under
existing management control. Each such company and its US creditors will now
work towards agreeing a Plan of Reorganisation which will provide for the
restructuring of the US lease portfolio and the settlement of claims of
landlords whose leases are sought to be reorganised.
Under Chapter 11, the statutory maximum claim that each such landlord will have
against each of the relevant lessee companies and the relevant guarantor will be
limited to the higher of (i) one year's rent or (ii) 15% of the remaining lease
term, not to exceed three years, in each case under the relevant lease. However,
negotiations with landlords are already at an advanced stage and in consequence
it is expected that the final settlement will be considerably less than this
worst case position and that it will be paid over time once the Plan of
Reorganisation is approved.
Once the Plan of Reorganisation is confirmed by the US Court, payment of
settlements to US creditors can begin and each Regus Chapter 11 Company can
emerge from Chapter 11 protection. Regus expects that this will occur well
within the 12-month period that is typical for Chapter 11 proceedings.
During the Chapter 11 process, each Regus Chapter 11 Company will maintain its
normal business operations and continue to provide employees with salaries and
benefits. It will also be able to do business with suppliers and customers in a
routine manner. Each such company will however be unable to enter into
transactions outside the ordinary course of business without the approval of the
US Court.
A Chapter 11 filing immediately freezes all existing financial claims against
each Regus Chapter 11 Company by US creditors, both in US and non-US Courts.
Overall, Regus does not expect the Chapter 11 restructuring process to have any
impact on the Group's ability to trade normally and to continue to provide the
same high level of service that customers have always received. In particular,
Regus does not expect that it or any member of its group will become subject to
any involuntary insolvency process in any part of the world other than the US.
The Regus Group is the world's largest provider of serviced offices operating
more than 400 business centres in 240 cities across 52 countries. Regus business
centres provide businesses, both large and small, with access to fully equipped
office workspaces on flexible terms. With more than 92,000 office workspaces
worldwide, the Regus Group is also a market leader in providing meeting rooms,
training facilities and public access videoconferencing studios.
THE "SAFE HARBOR" STATEMENT UNDER THE US PRIVATE SECURITIES REFORM ACT OF 1995
This press release contains statements concerning the Group's business,
financial condition, results of operations and certain of the Group's plans,
objectives, assumptions, projections, expectations or beliefs with respect to
these items. These statements are intended as forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
statements include, without limitation, those concerning: the Group's future
cash flow and working capital position, the Group's cost reduction programme,
restructuring of unprofitable operations, expectations regarding sales, trading
profit and growth, the Group's possible or assumed future results of operations
and/or those of the Group's associates and joint ventures, capital expenditure,
adequacy of capital and liquidity, financing plans, and those preceded by,
followed by, or that include the words, "believe", "expect", "intend", "plan",
"anticipate", or similar expressions.
The Company cautions that any forward-looking statements in this press release
may and often do vary from actual results and the differences between these
statements and actual results can be material. Accordingly, readers are
cautioned not to place undue reliance on forward-looking statements, which speak
only at their respective dates. The Company undertakes no obligation to release
publicly the result of any revisions to these forward-looking statements that
may be made to reflect events or circumstances after the date of this press
release, including, without limitation, changes in the Company's business or
acquisition strategy or planned capital expenditures, or to reflect the
occurrence of unanticipated events.
By their nature, forward-looking statements involve risk and uncertainty because
they relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these forward-looking
statements. These factors include, among other things, the nature of the
serviced office market, the long-term nature of the Company's lease commitments,
its financing requirements, foreign exchange, risks of litigation, and other
risks and uncertainties described in the Company's filings with the Securities
and Exchange Commission.
You should read the Company's Annual Report on Form 20-F, which is available
without charge at the internet site of the Securities and Exchange Commission
(http://www.sec.gov), for more information regarding factors that could cause
actual results and developments to differ from those expressed or implied by the
forward-looking statements in this document.