Fletcher Energy & Eldercare reach agreement

STOCK EXCHANGE LISTINGS: NEW ZEALAND (FEG), AUSTRALIA (FLCES), NEW YORK (FEG).

Fletcher Challenge Energy and
Eldercare reach agreement

AUCKLAND, 12 September, 2000 - Fletcher Challenge Energy and Eldercare NZ Limited today announced that they have agreed to negotiate several matters which are currently before the High Court. The two companies will negotiate to determine the value of ElderCare’s preference shareholding in Southern Petroleum (Services) Ltd, now a subsidiary of Fletcher Challenge Energy.

The parties have also agreed that no further claims of cost will be made with respect to any of the matters currently before the Court.

Among matters resolved under this agreement is an insider trading action by ElderCare against the Fletcher Challenge Energy subsidiary, Southern Petroleum No Liability. The Chief Executive of Fletcher Challenge Energy, Greig Gailey said today “Comments made by Mr Justice Fisher indicate that the action had little chance of success. We now look forward to putting this matter behind us.”

ElderCare Chairman Maurice Kidd said “We are pleased to have the remainder of our claims subject to negotiation, and if necessary, arbitration. We believe this is an appropriate and cost-effective method of determining the value of ElderCare’s entitlement.”

To: BUSINESS EDITOR From: STEPHEN JONES
COMMUNICATIONS DIRECTOR
FLETCHER CHALLENGE ENERGY

Fax: AUTO Telephone: 64-9-525 9230 or 021 629 535
Fax: 64-9-525 9031

Please Note: If you do not receive 1 page(s) including this page, or if any page is not readable, please call the sender immediately on telephone 64-9-525 9000. Further information on Fletcher Challenge Energy can be viewed at the Fletcher Challenge World Wide Web site, at http://www.fce.co.nz

© Scoop Media