Please accept this update on the insurance process, fruit loss and pool payments.
Seeka has lodged insurance claims under the marine cargo policy for extraordinary fruit loss arising as a consequence of the fire at Oakside and our efforts to mitigate the losses arising from that event. The claim really is in three parts. Firstly – Oakside extraordinary fruit loss, secondly loss arising from Oakside wooden bins that Seeka believes were smoke damaged in the fire and led to fruit softening where these bins were used [Huka Pack] and finally the losses arising from Seeka delaying ordering at other sites. In the last aspect Seeka was working with its insurers and really took the action at the request of the insurers to mitigate the loss.
So, we are pleased to advise that so far the insurer has accepted the first claim. This accepted part covers all the extraordinary loss for fruit packed at Oakside and stored at any other location. Our team is working with Zespri and the insurers’ underwriters to value this part of the claim [and it’s quite complicated].
At the same time we are working through the remaining aspects of the claim and while we have got some expert opinion supporting aspects of our claim, we are waiting for a second opinion to come in.
The acceptance of the claim has led to the question of paying growers and cash flow. Seeka has paid sufficient money into the pool to enable it to make a payment this month totalling $3m. This was reviewed and discussed yesterday with the Seeka Growers Council.
This payment is intended to smooth the cash flow for growers and give Seeka some time to work through valuing the accepted claim and the final aspects of completing the claim requirements with the assessors for the outstanding claims.
Our team is working hard and is working positively with the assessors and they understand the next deadline of 15 December for the next pool distribution.
Kind regards
Michael
Seeka Key
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