3.3 Other non-current assets

Alpiq has disposed of all of the loan claims received from Swissgrid Ltd in 2014 as part of the transfer of the Swiss high-voltage grid. As part of the disposal, the Swissgrid loan tranches were sold without the contractually related conversion rights. Swissgrid Ltd can, or must, convert the loans into equity if certain conditions arise. In this instance, the buyers of the loans would receive shares in the equity of Swissgrid Ltd. In the case of a conversion, however, Alpiq is obligated on the basis of the contract with the buyers of the loans to purchase from the buyers all equity shares of Swissgrid Ltd arising from the conversion up to a maximum amount of CHF 49 million (previous year: CHF 99 million). As a consequence, although Alpiq has sold the loans, it has at the same time entered into a directly related obligation in the amount of CHF 49 million (CHF 99 million). Due to the aforementioned contractual structure of the transaction, the loans could not be derecognised and remain on Alpiq’s books as “Receivables” in the amount of CHF 49 million (CHF 50 million) on account of the maturity of the underlying Swissgrid Ltd convertible bonds. In the previous year, this included “Other non-current assets” in the amount of CHF 49 million. The reclassification to receivables means that this amount of Swissgrid Ltd convertible bonds will be due for repayment in the next 12 months. Financial liabilities also exist in the amount of the obligations that were entered into as a result of the sales. These are included under “Other current liabilities” in the amount of CHF 49 million (CHF 50 million). In the previous year, this also included obligations disclosed under “Other non-current liabilities” in the amount of CHF 49 million.