Kangaroo Island Plantation Timbers Ltd (ASX:KPT) (KIPT) has received a second progress payment of $10 million from its treecrop insurance policy.
Including this latest payment, the company has now received $20 million in progress payments.
The balance of KIPTs claim is being progressed by the insurer. The policy has a limit of claims of $65 million.
KIPT will apply the funds to reduce its Commonwealth Bank of Australia (ASX:CBA) loan to minimise future finance costs. The loan balance will be reduced to $7.5 million.
Committed to plantation forest industry[hhmc]
The company remains committed to plantation forestry operations following summer bushfires with the proposed Kangaroo Island Seaport to play a key future role.
KIPT plans to bring the land back into full production as soon as possible and in order to do that the tree crop, 95% of which was damaged in the fires, must be harvested.
To get value from the current crop, the Kangaroo Island Seaport is needed to get the product – logs, woodchips or pellets – off the island.
Managing director Keith Lamb recently said KIPT intended to fund, construct andRead More – Source
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