Off market share buy back, page-6

Auto,

Just a point re the insurance claim. Refer my post of a few months ago - Post#: 17099378

The only 'cash payout' to Mgx will be for the Business Interruption part of their claim, ie loss of profits for the 12 months following the collapse.

The claim re the seawall will be paid progressively by the insurer, upon receipt of confirmation that Mgx agree to rebuild it. Only at that time (and on the basis that Mgx are/were correctly insured), the insurer/s will become the funder of the reconstruction, paying the contractors by agreed installments, as is the case with any other construction project.

Mgx could have an option to take a 'cash settlement' from the claim under the policy, however this would be substantially reduced from the 'rebuild cost'. This is because insurance policies for buildings/structures/etc, are contracts issued for replacement & reinstatement of the insured building/structure - the underlying principal of the insurance 'contract' is to put you (the insured - Mgx) back in the same position it was prior to the loss.

Therefore, the only 'cash' to come back to Mgx from an 'insurance payout', will be for the Business Interruption claim.

Hope this clarifies.