Financial Statements 2022 77 All figures are in A$000's 2022 2021 Contingent liabilities at balance date, not otherwise provided for in the annual financial statements, arising from guarantees in the normal course of business from which it is anticipated that no material liabilities will arise: - bank guarantees 52,052 53,670 - letters of credit 3,356 6,633 - insurance bonds 351,579 356,757 Total contingent liabilities 406,987 417,060 Consolidated 19. Contingent Liabilities The group has banking and bonding facilities of $665.6 million (2021: $576.5 million). The assets of the Group are pledged under a fixed and floating charge as security controlled by ANZ Fiduciary Services Pty Ltd (Security Trustee) on behalf of the secured lenders. As at 30 June 2022, the Group had $258.6 million (2021: $159.5 million) available (unused) under these facilities. The Group is, from time to time, involved in various legal disputes arising in the ordinary course of business. Depending on the merits, legal disputes can translate into future claims and legal proceedings which will be defended vigorously by the Group. Exposures may arise from the normal course of business including contractual penalties associated with ongoing projects. Where required, adequate provision is made for all liabilities which are expected to materialise, however if the outcome of claims or legal disputes are possible but not probable, they are not disclosed as a provision. Based on internal and external assessments, advice from legal advisors and counsel, the Board believes that there is significant uncertainty as to whether a future exposure or liability will arise in respect of claims or legal disputes, and as such the are remote. The Board believes that the Group has strong defences for claims and legal disputes, and any adverse decisions in relation to contingent liabilities will not have a material adverse effect on the financial position of the Group. Specific claims and legal disputes A plant leasing company and its liquidator has instituted two claims against the Company. The first claim is for alleged voidable and insolvent transactions and unfair preference payments made by the Company and which appears to be between $46 million and $66.5 million (insolvency proceedings). The second claim is a subcontracted claim for monies allegedly owed to the subcontractor (in liquidation), where quantum has been finalised (subcontract proceedings). It is expected that the amounts claimed in the insolvency proceedings will mostly overlap with the amounts claimed in the subcontract proceedings. In the subcontract proceedings, the Company has instituted a counterclaim relating to remeasured works performed by the subcontractor, back charges and the additional costs to complete the subcontract works after the subcontract was terminated for insolvency. The amount of the Company's counterclaim has not yet been finalised but is presently estimated at $21 million. The proceedings are continuing with pleadings and evidence exchanges taking place during 2022. The claims and the Company's counterclaim will be heard together and are listed for hearing for 30 days from 26 September 2022. The directors are of the opinion that all known liabilities have been recognised and that adequate provisions have been recognised. The Group is subject to routine tax audits via the ATO in Australia and in certain other overseas jurisdictions. The ultimate outcome of any tax audit cannot be determined within any acceptable degree of reliability at this time. The Group believes that it is making adequate provision for its taxation liabilities (including amounts shown as current and deferred tax liabilities). However, there may be an impact to the Group if any revenue authority investigations results in an adjustment that increases the Group's taxation liabilities.
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