IRI has already paid Silverstein approximately $440 million to fund the construction of the new building and compensate Silverstein for business interruption losses and the suit relates to funding issues likely to arise at the end of 2004. The suit was filed as a claim in a suit that is already pending in the United States District Court for the Southern District of New York brought by a former tenant of 7 World Trade Center against IRI.

IRI was the sole insurer of 7 World Trade Center, which was covered by an $860 million insurance policy. IRI maintains that the policy covers five buildings, not just 7 WTC. Representatives claim Silverstein supplied them with that figure as the cost of replacing all of the buildings including the rental stream.

The $440 million already paid by IRI will enable the construction to go forward through the end of 2004, however completion of the building is scheduled for the beginning of 2006. "The foundations are almost complete and portions of the building already stand three-stories above grade, says Larry Silverstein, president and CEO of Silverstein Properties. "We have bought all of the concrete and structural steel necessary to finish the building and we expect to execute a guaranteed maximum price construction contract with our general contractor, Tishman Construction, shortly. It is critical for the recovery of lower Manhattan that 7 World Trade Center be rebuilt, and I am committed to making sure the building is completed on time."