Northern Wreck try to gag the Press, Comment, and knowledge of their Memorandum of Sale.

On Tuesday we reported that FT Alphaville had posted the memorandum sent to potential purchasers of Northern Wreck.

As a result of this posting the High Court ruled at around at around 6.50pm on Tuesday 14th for Northern Rock Directors, that the FT are injuncted against revealing the contents of this memorandum. This temporary injunction runs until Tuesday when full evidence in the case will be heard.

Initially Northern Rock sought an injunction which would prevent the whole of the media from reporting anything about the sale memorandum.

Northern Rock wanted the injunction to prevent publication of the names of those who had been provided with the sale memorandum, notwithstanding the fact that names of potential bidders have already been widely published.

Northern Rock also sought an order that would have prevented disclosure of the fact that it had obtained an injunction. The FT resisted this and the order was refused.

Northern Rock intended that an injunction should be obtained anonymously, but this was also unsuccessful.

In view of the fact that the hearing went on so late, the judge granted a temporary injunction lasting seven days in order to preserve the position until he could hear full evidence. The FT argued that there was a substantial public interest in the story and that it was extremely important that shareholders were entitled to know where they stand. The Judge took the view that at an emergency hearing he would give priority to the fact that the sale memorandum contained a written confidentiality undertaking entered into by the original recipients of the document, and that he would protect this pending a full hearing of all the evidence.

Northern Wreck published the following on their website...

NORTHERN ROCK ANNOUNCEMENT

Northern Rock Plc (the “Company”) announces that it is aware that a confidential memorandum sent to parties with a potential interest in all or part of the Company under strict confidentiality obligations has unfortunately been leaked to a newspaper group. The memorandum appeared on a website controlled by that group.In order to protect the integrity of the information which has been provided to potential purchasers and to help ensure it can implement its strategic review in a way designed to achieve the best outcome for the Company and its stakeholders, including shareholders, creditors, customers and employees, the Company has obtained an injunction restricting publication of the information contained in the memorandum.

The Company believes that further speculative reporting based on the illustrative information in the memorandum may jeopardise the complex discussions and negotiations taking place in connection with its strategic review.It has been reported that the memorandum included certain illustrative transaction structures and financial information prepared in connection with the Company’s strategic review.

As was made clear by the memorandum the financial information was prepared solely to illustrate the potential financial impact of these transaction structures on the Company’s business.None of the information reported as being in the memorandum should be viewed as guidance to the market as to future outcomes of the strategic review or as an accurate representation of future results.

The memorandum was not prepared with a view to public disclosure or in compliance with rules, guidelines or policies relating to public disclosure.Announcements regarding the outcome of the strategic review will be made as and when appropriate and any information that is material will be published at that time. There can be no certainty that the discussions taking place with interested parties will lead to an offer for the Company or for all or any part of its business.

The Company confirms that the existing deposit guarantee arrangements announced by HM Treasury and the revised facilities agreed with the Bank of England announced on 9 October 2007 remain in place.

Lord Patel has copies of the memorandum and will shortly post them. The significant parts were dealt with in the post on Tuesday. However the whole thing is available we now discover as a pdf file at http://www.banks-implode.com/NR-Secret-Memo.pdf

If you are still foolish enough to own shares, get rid.... Now at all time low of 133p.

The behaviour of the Directors of NR , the BOE, Darling FSA is outrageous and in many respects criminal . The market in NR shares is totally false and dishonest.