ElderCare and Fletcher Energy Settle Disputes
FOR IMMEDIATE RELEASE Media Release
ElderCare and Fletcher Challenge Energy Settle Disputes
Auckland – 12
September 2000 – Listed retirement care provider ElderCare
New Zealand (NZSE: ELD) today announced that it has settled
several matters currently before the High Court with
Fletcher Challenge Energy (NZSE: FCE).
The two companies have agreed to undertake a process including, if necessary, legally binding arbitration to determine the value of ElderCare’s preference shareholding in Southern Petroleum (Services) Ltd (SPS) now a subsidiary of FCE.
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.
Amongst the matters resolved by the agreement was an insider trading action by ElderCare against FCE subsidiary, Southern Petroleum No Liability. Said ElderCare Chairman, Maurice Kidd, “Comments made by Mr Justice Fisher, and our own legal review of the matter, left the board clearly of the view that this action had little chance of success.”
“We are pleased to have the valuation issue subject to a negotiation process and, if necessary, arbitration. We believe this is an appropriate and cost-effective method of determining the value of ElderCare’s entitlement.”
ElderCare New Zealand Limited (NZSE: ELD) develops, invests in and manages retirement and other health care facilities. The company owns a substantial portfolio of nursing homes, assisted living and assessment and rehabilitation facilities throughout New Zealand, in which it offers broad and varied services to meet the healthcare needs of New Zealanders.