The development approval for the seaport is expected in the coming months.
KPT’s timber was insured for a book value of about $115 million, with an annual limit of $65 million and an excess of $5 million applying to any one claim.
The company received a $10 million insurance progress payment last month under its treecrop insurance policy.
Claims against another insurance policy, covering fire damage to houses, fences and sheds, are also being prepared by the company and a $1 million progress payment has now been received against the cost of replacing these assets.
CBA debt repayment
In support of the company, CBA has requested only a partial repayment and it has been agreed that $8 million of the $11 million initial insurance proceeds will be used towards this.
The company’s debt will be immediately reduced to $21.7 million as a result, with this amount expected to be fully repaid from remaining insurance proceeds, leaving the company with substantial net cash.
Shares in KPT remain voluntarily suspended from trading on the ASX, in accordance with Listing Rule 17.2.