✨ Financial Statements Notes
29 JUNE
NEW ZEALAND GAZETTE
2217
TELECOM AUCKLAND LIMITED
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
12 CONTINGENT LIABILITIES (Continued)
GUARANTEES
The Company has guaranteed, together with other subsidiary companies, approximately $1,533 million of the indebtedness of the parent company and other subsidiary companies at 31 March 1992, principally under the following agreements:
(i) $466.3 million under a trust deed made as of 25 October 1988 with the New Zealand Guardian Trust Company Limited providing for the constitution and issue of securities in respect of indebtedness from time to time of the parent company and/or any guaranteeing subsidiary.
(ii) $542.0 million under a trust deed made as of 20 September 1989 and certain supplemental trust deeds with the Law Debenture Trust Corporation PLC providing for the constitution and issue of securities in respect of indebtedness from time to time of the parent company and/or any guaranteeing subsidiary.
(iii) British pounds 122.6 million (NZ$388.1 million) under a deed poll dated 12 November 1990.
(iv) $137.0 million under a deed of guarantee dated 27 March 1992 in respect of the issue of Mandatory Convertible Notes by a fellow subsidiary. Further performance based guarantees have also been given by the company.
Under certain of the agreements referred to above the Company together with the other guaranteeing subsidiaries has given a negative pledge that while any of the guaranteed indebtedness remains outstanding it will not, subject to certain exceptions, create or permit to exist any charge or lien over any of its assets.
13 RELATED PARTY TRANSACTIONS
RELATIONSHIP WITH STATE OWNED ENTERPRISES AND GOVERNMENT DEPARTMENTS
The Company is wholly owned by Telecom Corporation of New Zealand Limited which in turn was owned by the Crown until 12 September 1990. During that time the Company undertook many transactions with other State Owned Enterprises and government departments which were carried out at arm's length and in the normal course of business.
RELATIONSHIP WITH PARENT AND FELLOW SUBSIDIARY COMPANIES
During the period the Company derived revenue (approximately 8%) from access fees, maintenance services and asset construction services provided to fellow subsidiaries. The Company also utilised network capacity and related services and group management services provided by fellow subsidiaries. Additionally, certain inventory and network assets were procured from and serviced by fellow subsidiaries. Such expenses represented approximately 15% of total operating expenses.
Outstanding intercompany balances as at 31 March 1992 are:
- Intercompany receivable $4.9 million
- Intercompany payable and current account $79.9 million
- Intercompany term liabilities $359.6 million
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VUW Te Waharoa —
NZ Gazette 1992, No 97
NZLII —
NZ Gazette 1992, No 97
✨ LLM interpretation of page content
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Telecom Auckland Limited Financial Statements
(continued from previous page)
🏭 Trade, Customs & Industry27 May 1992
Telecommunications, Financial Statements, Contingent Liabilities, Guarantees, Related Party Transactions, State Owned Enterprises, Government Departments, Parent Company, Fellow Subsidiaries, Intercompany Balances