Tuesday 24th November 2020
|Text too small?|
Tower Limited (NZX/ASX: TWR) today announced that it has entered into a settlement agreement with the Earthquake Commission (EQC) regarding an outstanding receivable resulting from the Canterbury Earthquakes.
Under the settlement agreement Tower will receive $42.1m after disbursement to reinsurers and costs. The write off of the residual amount will result in an impact of approximately $9.5m on Tower’s FY20 reported net profit.
Tower Chairman, Michael Stiassny, said that the settlement amounted to 76% of the gross carrying value listed in Tower’s accounts, a good outcome that means the company can now turn its full focus to the future.
“The Canterbury Earthquakes remain a significant event in New Zealand’s history and will have a lasting impact on the community,” said Stiassny.
“For Tower, this legacy resulted in distractions that have been progressively removed over the years and it is important we provide the management team with clear air to move the business forward and accelerate.
“The Board determined that reaching this settlement agreement dealt with any remaining unpredictability and gave certainty to our shareholders, who will be pleased to see this risk removed from our business.
“We now have a very strong capital position and will provide a further update in relation to dividend payments with our 2020 financial year results announcement tomorrow.”
See the links below for more details:
Source: Tower Limited
No comments yet
Chatham Rock Phosphate Limited (NZX: CRP) Chatham Successfully Completes Private Placement
Turners Automotive Group Limited (NZX: TRA) Upgrades FY21 Earnings Guidance
Blackwell Global Holdings Limited (NZX: BGI) Restructure of Business Operations
Vista Group International Limited (NZX: VGL) Vista Group appoints James Miller as Independent Director
Rakon Limited (NZX: RAK) Update of FY2021 Earnings Guidance
The a2 Milk Company Limited (NZX: ATM) Organisational Announcement
Reserve Bank of New Zealand Committed to Action as It Responds to Data Breach
MHM Automation Limited (NZX: MHM) Settlement of New Plymouth Building Sale
Napier Port Holdings Limited (NZX: NPH) First Quarter 2021 Trade Volumes
New Zealand Oil & Gas Limited (NZX: NZO) Mahato PSC Update - Oil Production