Note 37. Events occurring after statement of financial position date
The following significant events have occurred since statement of financial position date and prior to signing the financial statements.
Dividend declared and suspension of dividend reinvestment plan
On 26 August 2010, the Directors resolved to pay a fully-franked dividend of 9 cents per share on 20 October 2010. On 19 August 2010 the Board resolved
to suspend the operation of the dividend reinvestment plan for the 2010 final dividend.
Debt refinancing
Tranche B of the Group’s multi-currency corporate debt facility with a facility limit of $60,000,000 matured on 12 July 2010. This facility was undrawn at 30
June 2010. This debt facility was replaced by facilities totalling $65,000,000 with the following banks: Bank of Tokyo-Mitsubishi and JP Morgan Chase
along with a facility extension with Westpac Banking Corporation.
Share purchase plan
On 26 August 2010 the Board announced a share purchase plan for eligible shareholders. Refer Note 25.
Note 38. Contingent liabilities
Details and estimates of maximum amounts of contingent liabilities are as follows:
2010 2009
$’000 $’000)
Bank guarantees in respect of contracts of wholly owned companies 118,902 92,480
Insurance bonds in respect of contracts of wholly owned companies 146,281 164,592
265,183 257,072
Transfield Services’ share of bank guarantees in respect of contracts of joint ventures 29,351 26,919
294,534 283,991
The Group has entered into an unsecured Multi Option Bilateral Facility agreement under which bank guarantees and letters of credit are provided.
Bank guarantees and insurance bonds (excluding joint ventures and non-wholly owned companies)
Used 265,183 257,072
Unused 165,950 192,789
Total facility 431,133 449,861
The Directors are not aware of any material claims on the consolidated entity except as follows:
A controlled entity in the Group is involved in an action relating to disputed employee benefits. Should the outcome of the action be unfavourable to the
entity, costs for the disputed employment benefits may be incurred. The information usually required by AASB 137 Provisions, Contingent Liabilities and
Contingent Assets is not disclosed on the grounds that it can be expected to seriously prejudice the outcome of the process. The entity is defending its
position and the Directors continue to review the situation as it unfolds. The Directors are of the opinion that the dispute can be successfully resolved by
the Group. No material losses are anticipated in respect of any of the above contingent liabilities.