New Zealand Gazette – 2005 – No. 200

Page 5071

✨ Financial Statements Notes



TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS

NOTES TO THE FINANCIAL STATEMENTS continued

FOR THE YEAR ENDED 30 JUNE 2005

17. CAPITAL COMMITMENTS

Capital commitments in respect of contracts for capital expenditure:

LINES BUSINESS 2005 $000 LINES BUSINESS 2004 $000
Within one year 13,589 4,166
One to two years 2,412 614
Two to five years - -
Total capital commitments 16,001 4,780

18. OPERATING LEASE COMMITMENTS

Commitments in respect of non-cancellable operating leases payable:

LINES BUSINESS 2005 $000 LINES BUSINESS 2004 $000
Within one year 3,196 2,673
One to two years 3,104 2,488
Two to five years 8,784 7,308
Later than five years 12,852 14,585
Total operating lease commitments 27,936 27,054

19. CONTINGENT LIABILITIES

(i) Guarantees

Cross Border Lease
Transpower has entered into three cross border leases in respect of certain HVDC converter stations, the submarine cables and the majority of the AC transmission assets in the South Island. The nature of these transactions is described in Note 11.

Transpower has given guarantees and certain undertakings in accordance with a limited guarantee dated 24 October 1996 in respect of certain HVDC converter stations, a limited guarantee dated 31 May 1996 in respect of the submarine cables and a limited guarantee dated 22 December 2003 in respect of the South Island AC assets.

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, Euro medium term notes and Australian medium term notes as described in Note 12.

The maximum exposure under each of these guarantees is as follows:

2005 2004
Bonds 397,681 439,134
Euro Medium Term Notes 83,178 125,401
Australian Medium Term Notes 7,308 -
US Private Placement 164,474 -

The likelihood of losses in respect of these matters is considered to be remote.

(ii) Todd Energy and Kiwi Co-operative Dairies Claim
Todd Energy Limited (Todd) and Kiwi Co-operative Dairies Limited have commenced a claim against both Transpower and Powerco Limited alleging breaches of the Commerce Act 1986.

Kiwi Co-operative Dairies Limited has since withdrawn from the proceedings. Todd is seeking declarations, injunctions and damages in an amount that it will quantify two months before trial (plus interest and costs). Transpower has filed a statement of defence and believes that it has not breached the Commerce Act in any respect. Transpower applied to the High Court for summary judgement and struck out against Todd on the grounds that there is no arguable basis for Todd’s claim. The High Court struck out one of Todd’s causes of action against Transpower in April 2005. Transpower is appealing the High Court decision (in respect of the remaining two causes of action that were not struck out) to the Court of Appeal (and Todd has cross-appealed).

(iii) Various other lawsuits, claims and investigations
Various other lawsuits, claims and investigations have been brought or are pending against Transpower. The Directors of Transpower cannot reasonably estimate the adverse effect (if any) on Transpower if any of the foregoing claims are ultimately resolved against Transpower’s interests.



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Online Sources for this page:

VUW Te Waharoa — PDF NZ Gazette 2005, No 200


Gazette.govt.nz — PDF NZ Gazette 2005, No 200




✨ LLM interpretation of page content

🏭 Notes to the Financial Statements for Transpower New Zealand Limited Lines Business (continued from previous page)

🏭 Trade, Customs & Industry
Financial Statements, Capital Commitments, Operating Lease Commitments, Contingent Liabilities, Guarantees, Cross Border Lease, Debt, Lawsuits, Claims, Investigations