✨ Financial Statements
4208
NEW ZEALAND GAZETTE
No. 162
TRANSPower NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2000
- 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 11.
The maximum exposure under each of these guarantees is as follows:
| LINES BUSINESS 2000 $000 | LINES BUSINESS 1999 $000 | |
|---|---|---|
| Bonds | 675,401 | 674,918 |
| Euro medium term notes | 452,779 | 474,105 |
The likelihood of losses in respect of these matters is considered to be remote.
(ii) Vector Limited Claim (formerly Mercury Energy Limited)
In 1998 Vector Limited (Vector) commenced a claim against Transpower concerning Transpower's pricing methodologies under common law and a claim under the Commerce Act.
The amount claimed under the Commerce Act is for $18 million.
The common law based on prime necessaries was struck out and Vector ordered to replace the Commerce Act claim. Vector has filed replated causes of action based on judicial review (which cannot be quantified at present) and under the Commerce Act. Transpower has applied to have these replated causes of action struck out.
After the reporting period ended the High Court accepted Transpower's application and struck out these causes of action.
After the balance date the dispute with Vector was settled.
(iii) Todd Energy and Kiwi Co-operative Dairies Claim
Todd Energy Limited and Kiwi Co-operative Dairies Limited have commenced a claim against both Transpower and Powerco Limited alleging breaches of the Commerce Act. The damages claimed total $20 million. Transpower has filed a statement of defence and believes that it has not breached the Commerce Act in any respect.
(iv) Network Tasman
Network Tasman Limited has commenced a claim against Transpower alleging misrepresentation, breach of good faith, breach of collateral contract, estoppel, breach of the Fair Trading Act and breach of implied term. The damages claimed total $7 million. Transpower has filed a statement of defence and believes that the claims against it are without merit.
There are no other material contingent liabilities for Transpower of the Transpower Group as at balance date (1999:nil).
- SEGMENTAL INFORMATION
The Transpower Lines Business operates predominantly in one industry, the transmission of high voltage electricity. Transpower's operations are carried out in New Zealand and are therefore within one geographical segment for reporting purposes.
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2000, No 162
Gazette.govt.nz —
NZ Gazette 2000, No 162
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Transpower New Zealand Limited Notes to the Financial Statements
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🏭 Trade, Customs & IndustryFinancial Statements, Contingent Liabilities, Guarantees, Debt, Claims