More than half of the $2bn (£1.1bn) fund set aside by insurance companies after the World Trade Center (WTC) attacks in 2001 has been used up by lawyers fees and compensation payments, claimed a report
More than half of the $2bn (£1.1bn) fund set aside by insurance companies after the World Trade Center (WTC) attacks in 2001 has been used up by lawyers fees and compensation payments, claimed a report.
According to the report, it is understood that the WTC owner, the Port Authority of New York, has already reimbursed WTC developer Larry Silverstein most of the $125m in equity that he initially invested in the site.
Wachtell, Lipton, Rosen & Katz, the law firm representing Silverstein and the Port Authority in the case against the complex's insurers have reportedly been paid approximately $100m in fees out of the fund.
In addition, the report said $900m had been paid out in compensation to both the Port Authority and Silverstein for business interruption expenses, including nearly $300m that Silverstein received to help service a loan against the purchase of the WTC lease.
Robert Yaro, head of the Regional Plan Association, warned that the speed at which the funds set aside for redevelopment were evaporating could jeopardise efforts to rebuild a new complex at the site.
