✨ Financial Statements Notes
4550 NEW ZEALAND GAZETTE No. 193
TRANSPOWER NEW ZEALAND LIMITED GROUP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 1998
19. CONTINGENT LIABILITIES
(i) Guarantees
Cross Border Lease
Transpower has entered into two cross border leases in respect of certain HVDC converter stations and the submarine cables. The nature of these transactions is described in Note 12.
Transpower has given guarantees and certain undertakings in accordance with a limited guarantee dated 24 October 1996 in respect of certain HVDC converter stations and a limited guarantee dated 31 May 1996 in respect of the submarine cables.
The likelihood of losses in respect of these matters is considered to be remote.
Debt
Transpower has provided guarantees in respect of loan arrangements for the Bonds and Euro medium term notes as described in Note 13.
The maximum exposure under each of these guarantees is as follows:
| 1998 | 1997 | |
|---|---|---|
| $000 | $000 | |
| Bonds | 633,879 | 633,730 |
| Euro medium term notes | 690,023 | 704,721 |
The likelihood of losses in respect of these matters is considered to be remote.
(ii) Contingencies
Transpower has an agreement with a generator which requires payment by Transpower if the generator is constrained by Transpower under given circumstances from injecting electricity into the National Grid. Given the uncertainty of future events no reasonable quantification of any payment under the agreement can be made.
(iii) Mercury Claim
Mercury Energy Limited has commenced a claim against Transpower concerning Transpower's pricing methodologies. The damages sought by Mercury cannot be quantified at present.
Transpower believes that it is in a strong position and has made application to have the claim struck out.
There are no other material contingent liabilities for Transpower or the Transpower Group as at balance date (1997: nil).
20. SEGMENTAL INFORMATION
The Transpower Group operates predominantly in one industry, the transmission of high voltage electricity. Transpower Group's operations are carried out in New Zealand and are therefore within one geographical segment for reporting purposes.
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VUW Te Waharoa —
NZ Gazette 1998, No 193
NZLII —
NZ Gazette 1998, No 193
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Transpower New Zealand Limited Notes to the Financial Statements
(continued from previous page)
🏭 Trade, Customs & IndustryContingent Liabilities, Guarantees, Cross Border Lease, Debt, Contingencies, Mercury Claim, Segmental Information, Financial Statements