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- Release Date: 19/12/13 14:56
- Summary: GENERAL: LPC: Port Settles With Insurers
- Price Sensitive: No
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LPC
19/12/2013 12:56
GENERAL
REL: 1256 HRS Lyttelton Port Company Limited (NS)
GENERAL: LPC: Port Settles With Insurers
19 December 2013
As advised at the Company's annual meeting, Lyttelton Port Company Limited
(LPC) and its insurers (Vero, NZI and QBE) have entered into a mediation
process. The outcome of that process is that all the various claims of the
Company against its three insurers under the Company's material damage,
business interruption and contract works insurance policies, arising out of
the September 2010, February 2011 and June 2011 earthquakes, have been
settled with the insurers.
The settlements involve the payment in aggregate by the three insurers of
$438.3 million plus GST (being a gross amount of $450 million less
deductibles of $11.7 million) in full and final settlement of the claims. The
Company has already received payments from its insurers of $55.6 million, so
that the total amount remaining to be paid by the insurers in respect of all
of the claims will be $382.7 million plus GST. Payment will be made in full
by 28 February 2014.
All of the sums received will be expended over time in the rebuilding and
reinstatement of Lyttelton Port's facilities. Approximately $66 million has
already been expended. The Port has flexibility on how and when assets will
be reinstated.
There remains one outstanding matter with a third party that may result in
the Company making an additional recovery. The Company is not in a position
to provide further details at this time.
Chairman Trevor Burt thanked the insurers for participating in a constructive
mediation process. Mr Burt said "Both parties are satisfied with the
outcome, coming 3 1/2 years after the first earthquake in September 2010, and
recognising the complexity of the claims. This enables LPC to rebuild the
Port, with freedom to optimise facilities for the future".
LPC is looking to put in place contract works insurance cover (including
earthquake cover) for the rebuild programme. Work is progressing on the
rebuild of Cashin Quay 2 and the Company expects to be able to fully insure
this asset (including for earthquake) when the reinstatement is completed.
It is anticipated that as the overall programme progresses, all assets will
be able to be fully insured.
-Ends-
For further information contact:
Trevor Burt
LPC Chairman
Mobile: 027 502 0050
End CA:00245436 For:LPC Type:GENERAL Time:2013-12-19 12:56:34
