Villa World confirms Silverstone litigation settled

Company News

by David Chau

Queensland-based developer, Villa World (ASX:VLW), has announced it has reached an in-principle settlement agreement with the parties in the Silverstone litigation.

This case arose out of alleged building defects found in a Tweed Heads apartment block, called Silverstone, which was completed in 2009. Villa World was the developer and registered builder.

The company has not revealed the amount of its contribution to the proposed settlement, but says it is not materially different from provisions that it made in financial statements as at 30 June 2016.

Looking at the company’s FY16 statements, it allocated $1.9 million for ‘legacy litigation issues’ (and in the FY year before that, it was $8.9 million). In addition, the company raised an additional $2.8 million for 2H16 – specifically for the Silverstone litigation.

Villa World reported a net profit of $33.7 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.