World Trade Center Claims Settled

[TriWooOx]

Quote:A lengthy legal dispute over insurance claims for the old World Trade Center has been settled, clearing the way for the site to be rebuilt.

Seven insurers have agreed to pay an extra $2bn (£1bn) to the group seeking to redevelop the site, destroyed by the 11 September terrorist attacks.

The deal was brokered by New York state officials and Larry Silverstein, who held the lease to the Twin Towers.

Mr Silverstein has now secured more than $4.5bn in insurance payouts.

Five-year battle

This is less than the property developer, who held a $3.5bn insurance policy on the World Trade Center at the time of its collapse, was awarded following a 2004 trial.

The settlement ends once and for all a five-year legal battle between Mr Silverstein and insurance companies over claims for replacing the Twin Towers.

According to a statement from New York state Governor Eliot Spitzer and state insurance superintendent Eric Dinallo, the companies involved in the settlement included Allianz, Swiss Re, Travelers and Zurich Financial Services.

"I do not think anyone thought it would ever end," Mr Dinallo said of the settlement.

"I am most proud of an industry that stepped up. The rebuilding would not be possible without the insurers."

Mr Spitzer said the agreement removed the "last major barrier to rebuilding" while New York City Mayor Michael Bloomberg described it as "a major step" in the area's regeneration.

The proceeds of the settlement will be split between the Port Authority of New York, which owns the site and Silverstein Properties, which is spearheading its rebuilding.

The end of legal proceedings will make it easier for the group to raise finance for the massive project.

Work on the new flagship World Trade Center Freedom Tower began last year.

http://news.bbc.co.uk/1/hi/business/6687239.stm