Kangaroo Island Plantation Timbers (KIPT) has received a further $10 million as part of its treecrop insurance compensation following the bushfires.

The amount represents the second tranche of payout from its policy.

“Including this latest payment,” said KIPT, “the company has now received $20 million in progress payments. The policy has a limit of claims of $65 million.

“The balance of the company’s claim is being progressed by the insurer and further details will be released once the claim has been finalised.”

To minimise future finance costs, KIPT will be applying the funds to shrink its Commonwealth Bank loan. The firm will see its loan balance reduced to $7.5 million.