Silverstein Properties Inc., owner of the terrorist-destroyed former World Trade Center and redeveloper of the site, has just achieved another step in its attempt to collect on a bevy of insurance claims on the Twin Towers, which were leveled in the Sept. 11, 2001 attacks. Silverstein and the Port Authority of New York will receive approximately $12.5 million from insurer TIG, after having already received a $9.1 million payment from the company.

The settlement comes three years after a federal jury concluded that TIG and nine other insurers are responsible for two insurance policy limits, concluding that the destruction of the individual towers by two separate airplanes constituted separate occurrences. TIG will also be required to pay a prejudgment interest in the sum of about $3.4 million, representing 90 percent of Silverstein's prejudgment demand.

There were 24 policies on the World Trade Center, and eight insurers still have outstanding balances totaling $2.14 billion. New York City-based Silverstein is due to collect an estimated total of $4.6 billion in insurance claims. Additionally, Silverstein and the Port Authority of New York and New Jersey recently filed a $1 billion lawsuit--seeking $250 million in unpaid claims and $750 million in damages--against Royal & Sun Alliance Group Plc and its recently spun-off U.S. affiliate. Silverstein acquired the 10 million-square-foot World Trade Center property just six weeks before the terrorist attacks.

Silverstein is applying insurance payments toward the redevelopment of the World Trade Center site (pictured). The company completed the 1.7 million-square-foot 7 World Trade Center at 250 Greenwich St. last May, and began work on the Freedom Tower last April. Silverstein will also develop office buildings at 200, 175 and 150 Greenwich St.

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