Download annual report 2010 - Port of Rotterdam

Provision for guarantees allegedly
furnished
7 Long term debt
Subordinated loans from the
Subordinated loans from the Municipality
of Rotterdam
Other loans from the Municipality
of Rotterdam
Ground lease buy-off
Financial lease commitments
Debts to credit institutions
Maintenance cost buy-off
On 24 January 2007, the District Court of Rotterdam gave its judgment in proceedings
between Commerz (Nederland) NV and the Port of Rotterdam Authority, denying the
claims of Commerz.
Commerz lodged an appeal against this judgment. On 1 February 2011, the court of
appeal in The Hague ratified the judgement of the district court in Rotterdam. The
expectation is that Commerz bank will give notice to appeal. Because of this, the
provision formed for this purpose was maintained. The Investment Agreement
concluded on 2 September 2005 between the State of the Netherlands, the
Municipality of Rotterdam and the Port of Rotterdam Authority lays down that any
future release of the provision will accrue to the Municipality by means of an additional
dividend. In 2010, only interest was added to the provision for guarantees which were
allegedly furnished.
This is a long term provision.
(amounts X € 1,000)
These loans are subordinated to all of the Port Authority’s other existing and future
creditors. Annual interest on these loans is 5.72%.
Annual interest rates on these loans range between 5.03% and 6.14%.
31/12/2010 31/12/2009
Term Term Term TOTAAL TOTAAl
< 1 year 1-5 years > 5 years
Municipality of Rotterdam 92,400 219,725 - 312,125 404,525
Other loans from the Municipality of Rotterdam 8,043 128,914 55,811 192,768 200,338
Ground lease buy-off 9,800 49,000 94,919 153,719 154,807
Financial lease commitments 315 2,060 12,325 14,700 14,987
Debts to credit institutions 7,676 74,138 373,678 455,492 282,907
Maintenance cost buy-off 1,988 9,940 1,990 13,918
Other long term debt - - 500 500 1,000
TOTAL 120,222 483,777 539,223 1,143,222 1,058,564
This represents the value of customer compensation for ground lease buy-offs.
The Port of Rotterdam Authority leases sites and a vessel for representative
purposes.
Of the total loans taken out with the European Investment Bank (€ 456 million) more
than 30% are on a fixed-interest basis (ranging between 4.65% and 4.96%). The
remaining loans have been taken out at a variable interest rates, based on the
3-month EURIBOR.
The Port of Rotterdam Authority agreed to buy off future small maintenance costs
related to a number of objects. The payment will take place in 7 periods.
The Port of Rotterdam Authority Annual report 2010 Financial Statements
121