✨ Financial Statements Notes
NEW ZEALAND GAZETTE, No. 149
24 NOVEMBER 2006
TRANSPOWER NEW ZEALAND LIMITED LINES BUSINESS
NOTES TO THE FINANCIAL STATEMENTS continued
FOR THE YEAR ENDED 30 JUNE 2006
16. CAPITAL COMMITMENTS
| LINES BUSINESS | LINES BUSINESS |
|---|---|
| 2006 | 2005 |
| $000 | $000 |
Capital commitments in respect of contracts for capital expenditure:
Within one year | 40,260 | 13,589
One to two years | - | 2,412
Two to five years | - | -
Total capital commitments | 40,260 | 16,001
17. OPERATING LEASE COMMITMENTS
Commitments in respect of non-cancellable operating leases payable:
Within one year | 4,932 | 3,196
One to two years | 4,922 | 3,104
Two to five years | 11,631 | 8,784
Later than five years | 12,338 | 12,852
Total operating lease commitments | 33,823 | 27,936
18. 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 guarantees 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:
| 2006 | 2005 | |
|---|---|---|
| Bonds | 348,233 | 397,651 |
| Euro Medium Term Notes | 271,283 | 183,178 |
| Australian Medium Term Notes | - | - |
| US Private Placement | 164,474 | 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Kiwi Co-operative Dairies Limited has since withdrawn from the proceedings.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 has indicated 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 strikeout 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).
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Online Sources for this page:
VUW Te Waharoa —
NZ Gazette 2006, No 149
Gazette.govt.nz —
NZ Gazette 2006, No 149
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Notes to the Financial Statements for Transpower New Zealand Limited Lines Business
(continued from previous page)
🏭 Trade, Customs & Industry24 November 2006
Financial Instruments, Accounting Policies, NZ IFRS, Taxation, Transpower, Lines Business, 2006