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Re: WTC getting paid Actual Cash Value?

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Posted by mark on January 22, 2002 at 18:57:18:

In Reply to: WTC getting paid Actual Cash Value? posted by Sure-net on November 19, 2001 at 03:07:11:

The Swiss Bank that lent Silverstein the money to
buy the World Trade Center is UBS Warburg. A US
bankruptcy judge just approved the sale of Enron to...
you guessed it! UBS Warburg. Does anybody smell
anything fishy here?


: NEW YORK, Nov 15 (Reuters) - Larry Silverstein, the leaseholder of the World Trade Center, and
: Swiss Re , his leading insurer, traded more blows in their highly public battle over insurance
: payments on Thursday, as Swiss Re said Silverstein's claim for the full value of the World Trade
: Center policy -- about $3.5 billion -- ruled out any plans to rebuild it.Silverstein, along with the
: Port Authority of New York and New Jersey, which owns the complex, rejected the argument,
: saying its claim for immediate payment of the cash value of the center had no bearing on its
: plans to rebuild in the area.

: Lurking behind the row is Silverstein's contention that he and the other insurance holders are
: entitled to two payouts of the $3.5 billion policy, on the ground that the destruction of the World
: Trade Center comprised two events.

: Swiss Re is challenging that view, and the two are set to decide the matter in court, unless they
: reach a settlement. That is unlikely in the near future, people close to the legal proceedings
: said. In the latest round of the row, Swiss Re said on Thursday that Silverstein's claim for the
: ``actual cash value'' of the center, filed with insurers last week, meant that he, and the Port
: Authority, could not claim again for rebuilding the center. ``By electing actual cash value, they
: have renounced any intention to rebuild,'' said Barry Ostrager, a lawyer representing Swiss Re,
: which stands to pay out about $750 million of the $3.5 billion policy.

: 'TOTAL AND COMPLETE FICTION' - ``It's just like with your car,'' Ostrager said. ``You can have
: coverage that gives you the actual cash value of your car, or coverage that gives you the
: replacement cost. If you elect actual cash value, the insurance company doesn't have to pay to
: replace your car.'' Silverstein, who says he does plan to rebuild, but wants insurance payments
: immediately, rejected the insurer's reading of the contract. ``Swiss Re's claim ... is a total and
: complete fiction,'' he said in a statement circulated to reporters. ``The choice of the method of
: settling the claim has no relationship whatsoever to whether the Port Authority and the
: Silverstein Group intend to rebuild.''

: Silverstein, along with the Port Authority, want actual cash value of the center paid over to them
: now, as that would likely be worth more than replacement value payments, made over a long
: period of time, and would entitle them to interest on the lump sum, which would otherwise go to
: insurers like Swiss Re. The Port Authority could not be reached for comment on the matter.
: Swiss Re said it is ready to that pay the cash value, but on the understanding that there are no
: plans to rebuild -- which would give rise to further insurance claims.

: Swiss Re, which has already paid its share of an initial $75 million payment to the insurance
: holders, said that if the full value of the $3.5 billion policy were paid out now, $1.5 billion would
: go to the Port Authority, $663 to General Motors Acceptance Corp. (GMAC) and UBS Warburg,
: which lent Silverstein money to take on the lease, and a maximum if $1.3 billion to Silverstein
: and Westfield Holdings Ltd. his partners in the lease.

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