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Contingent Liability Movements

Of the contingent liabilities detailed above, the following are new this year:

  • Indemnification of touring exhibitions – quantified guarantees and indemnities
  • Rugby World Cup 2011 – other unquantified contingent liabilities

The following items were resolved or recognised as a liability or expired over the year:

  • New Zealand Railways Corporation – guaranteed borrowings – quantified guarantees and indemnities

Note 22: Subsequent Event

On 29 August 2006 Mighty River Power Limited executed documents for the issue of a 15 year NZ$300 million credit wrapped floating rate bond. This will be issued on 7 September 2006. Mighty River Power Limited have also advised the Guardian Trust on the 29 August of its intention to exercise its early repayment option in relation to NZ$113.8 million of fixed rate bonds. The repayment will be made on the 15 September 2006.

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