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Governors tell WTC insurers to pay up or be sued

June 23, 2006

NEW YORK (Reuters) – The governors of New York and New
Jersey and New York’s mayor said on Friday said they would sue
World Trade Center insurers “within the next several days” if
they do not make payments needed to redevelop the site.

Some insurers have suggested they might withhold payments
because the World Trade Center developer, Larry Silverstein,
and the Port Authority of New York and New Jersey, which owns
the 16-acre site, this spring revised their original deal.

The Republican mayor, Michael Bloomberg, last week said a
few insurers believed Silverstein’s new pact violated their
insurance covenants because he will no longer own the Freedom
Tower.

Instead, the Port Authority now will own the 1,776-foot
Freedom Tower, meant to symbolize the revival from the deadly
September 11, 2001 air attacks, though Silverstein will still
build it.

“The success of the rebuilding of the World Trade Center
site is too important to fall prey to unnecessary delays and
legal maneuvering,” New York Gov. George Pataki said in a
statement.

Spokesmen for some World Trade Center insurers, including
Chubb Corp., St. Paul Travelers, and Lloyd’s of London, were
not immediately available. Spokesmen for Zurich American
Insurance Co. and The Hartford Financial Services Group Inc.
declined comment.


Source: reuters



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