Parkdean Resorts has expanded its £71m High Court lawsuit against insurance provider Axis Managing Agency, claiming a further £8.7m after delays to its business interruption coverage.
In an amended complaint submitted on 18 June, the holiday park firm stated the additional figure represents costs incurred while negotiating a refinancing deal dubbed “Project Richmond.”
“The defendants should have made the interim payment in May 2020, or shortly thereafter,” stated Parkdean. “Had they done so, or confirmed that they would do so, the claimants would not have been compelled to undertake Project Richmond at all, or in the same form and therefore would have avoided all or substantially all of the fees.”
“Project Richmond” involved the renegotiation of existing bank loans, which led to £3.75m in bank charges, as well as securing a £25m investment from owners the Onex Corporation, with associated interest of £2.5m, alongside £2.53m in lawyer’s fees.
Axis made its first payment to Parkdean in March of this year, eight months after Parkdean began proceedings against the Lloyd’s of London syndicate, with Parkdean increasing the figure it was suing for £59m to £71m last month.
However, Axis maintains its policy does not cover financial losses as a result of contagious and infectious disease.
The hospitality industry versus the insurance sector battle over business interruption policies rolls on.