International Power Annual Report 2004 | 19. Creditors: amounts falling due within one year

	Group		Company
	31 December 2004 £m	31 December 2003 £m	31 December 2004 £m	31 December 2003 £m
Trade creditors	104	71	5	1
Amounts due to subsidiary undertakings	–	–	1,448	814
Other creditors	108	58	14	14
Proposed dividend	37	–	37	–
Other taxation and social security	–	–	1	1
Corporation tax	83	86	15	19
Accruals and deferred income	139	100	52	41
Bank loans (secured)	71	531	–	–
2% Convertible US Dollar Bonds 2005	29	–	–	–
Total creditors: amounts falling due within one year	571	846	1,572	890

The bank loans are secured by fixed and floating charges over the assets of certain subsidiary undertakings. Substantially all of the Group's power stations, generating assets and other operating assets are financed under non-recourse facilities.

Secured bank loans
Secured bank loans are those where the obligation to repay lies solely with the subsidiary and are secured solely on the assets of the subsidiary concerned.

At 31 December 2003, we were in discussions with bank groups in relation to claimed technical defaults on the non-recourse debt for the US merchant portfolio. In July 2004, the US debt facility was successfully refinanced and the debt has been reclassified to long-term.

Convertible bonds

2% Convertible US Dollar Bonds 2005
On 24 November 2000, International Power (Cayman) Limited, a wholly-owned subsidiary company incorporated in the Cayman Islands, issued US$357 million 2% convertible notes due 2005, convertible into preference shares of International Power (Cayman) Limited at the holder's option, exchangeable for Ordinary Shares of, and unconditionally guaranteed on a senior unsecured basis by, International Power plc.

The notes are convertible into Ordinary Shares of International Power plc at a conversion price of 300p at any time between 4 January 2001 and 23 November 2005. Each US$1,000 principal amount of notes will entitle the holder to convert into a US$1,000 paid up value of preference shares of International Power (Cayman) Limited. Investors may elect to receive their Ordinary Shares in the form of American Depositary Receipts.

The 'unput' convertible unsecured notes will be redeemed on 24 November 2005 at a redemption price of 112.4% of its principal amount. Accordingly the convertible bond is now shown within short-term liabilities.