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The Housing Authority and a consortium of insurers based in Germany have reached a settlement, through mediation, of disputes regarding the insurers' obligations to indemnify the liability of B+B Construction Company Limited (In Liquidation) to the authority arising from short piles at Tin Shui Wai Area 31 Phase 1.
"As a result of the successful mediation, both the authority and the consortium of insurers have entered into an agreement which results in a sum of 23.8 million Euros being paid to the authority," the Assistant Director of Housing (Legal Service), Mr Anthony Wong, said today (July 24).
"This amount is considered by the authority to be reasonable and realistic, having regard to the inherent risks in the legal proceedings in enforcing the indemnity policies in Germany," Mr Wong said.
"The authority and the consortium of insurers confirm that all outstanding matters between them in relation to the indemnity issue have now been resolved," he added.
Ends/Monday, July 24, 2006
Issued at HKT 17:44
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