✨ Telecom Financial Statements
29 JUNE NEW ZEALAND GAZETTE 1767
TELECOM CENTRAL LIMITED AND SUBSIDIARY
NOTES TO THE FINANCIAL STATEMENTS
(CONTINUED)
13 CONTINGENT LIABILITIES (Continued)
The same competitor has commenced an arbitration against Telecom in respect of non-code access. The competitor is claiming damages for alleged misrepresentation and delay in provision of non-code access. The likelihood of the competitor succeeding in its claim or the amount of damages is at present not possible to assess. Telecom vigorously denies these claims.
This same competitor has also threatened or commenced a number of other pieces of litigation and/or arbitrations against Telecom. Telecom vigorously denies these claims.
Various other lawsuits, claims and investigations have been brought by or against the Company. The Board of Directors believe that in the event of an unfavourable outcome, such matters will not have a material adverse effect upon the Company's financial position.
GUARANTEES
The Company has guaranteed, together with other subsidiary companies, approximately $1,263 million of the indebtedness of the parent company and other subsidiary companies at 31 March 1993 together with, in each case, interest thereon, principally under the following agreements:
(i) $436.8 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) $367 million under trust deeds made as of 20 September 1989 and 3 April 1992 and subsequent 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 120.5 million (NZ$336.6 million) under a deed poll dated 12 November 1990.
(iv) $122.2 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.
14 RELATED PARTY TRANSACTIONS
RELATIONSHIP WITH PARENT AND FELLOW SUBSIDIARY COMPANIES
During the period the Company derived revenue (approximately 9.2%) 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 19.6% of total operating expenses.
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VUW Te Waharoa —
NZ Gazette 1993, No 94
NZLII —
NZ Gazette 1993, No 94
✨ LLM interpretation of page content
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Financial Statements under Telecommunications (Disclosure) Regulations 1990
(continued from previous page)
🏭 Trade, Customs & IndustryTelecommunications, Financial Statements, Contingent Liabilities, Guarantees, Related Party Transactions