Halliburton to Settle Asbestos Liabilities
Monday May 10, 2004 8:30 pm ET
Halliburton Inches a Step Closer to Settling Asbestos Liabilities###
HOUSTON (Summary of AP Article) -- Halliburton said it is closer to settling all of its asbestos injury lawsuits; company says a U.S. bankruptcy court will probably approve the bankruptcies of the firm's subsidiaries that were involved in manufacturing asbestos. Approval is expected by late summer 2004. Once the bankruptcies are approved, the company will pay $4.17 billion in cash and stock to settle 400,000 asbestos and 21,000 silica lawsuits. The asbestos injury lawsuits were settled in December 2002. Company also say its DII Industries division reached a non-binding agreement in principle with London Market insurance companies that could settle outstanding insurance disputes related to the asbestos settlement. Similar agreements with other insurance companies are expected. The potential insurance settlements would result in the receipt of $1.6 billion in cash for DII Industries. Halliburton expects to pay $2.775 billion of the total asbestos settlement in cash. In February 2004, the bankruptcy court dismissed all claims by insurance companies, ruling they had no standing to challenge the bankruptcies.