Asbestos Claimants - Mesothelioma Compensation, Asbestos Insulation
Honeywell agreements in about 90% of the North American Refractories Company (NARCO)-related asbestos claims
MORRIS TOWNSHIP, N.J., Jan. 17 - Honeywell (NYSE: HON) today confirmed it has signed definitive agreements or reached agreements in principle with about 236,000, or about 90%, of the North American Refractories Company (NARCO)-related asbestos claimants regarding settlement of all existing NARCO-related asbestos claims, whether filed or unfiled.
NARCO, which filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in January 2002, is a company that was sold by Honeywell in 1986. In addition to the announcement at a U.S. Bankruptcy Court hearing today in Pittsburgh, Judge Judith Fitzgerald approved an extension of a stay until February 18, temporarily enjoining any claims against Honeywell and pending the reorganization of NARCO. The stay reflects the continued progress of negotiations between Honeywell and the court-appointed Asbestos Creditors' Committee and between Honeywell and the law firms representing the vast majority of existing claimants.
Honeywell and NARCO are seeking to establish a trust under Section 524 (g) of the U.S. Bankruptcy Code. If approved by the court, the trust would bar any future NARCO-related asbestos claims against Honeywell and NARCO in state and federal courts; instead, all future claims would be directed to the federally supervised trust. By law, agreement with 75% of current claimants is required before the bankruptcy court will consider the trust for approval.
Asbestos litigation is leading to the bankruptcy of multinational corporations seeking protection from litigation that will soon approach $100 Billion Dollars worldwide.
These press releases were distributed by corporations commenting on their liability, government on legal reforms to end or stem payouts, as well as claimants and law firms announcing settlements for their clients.
Malignant mesothelioma is a rare form of cancer. It affects the linings of the cavities around the lungs, stomach, and heart. It is caused by inhaling asbestos fibers, but the cancer usually does not appear until 10 to 40 years after a person first inhales asbestos.
An asbestos lawyer seeks mesothelioma compensation for sufferers of asbestos-related diseases because the health hazards associated with asbestos exposure were known by product manufacturers long before the mineral was regulated.
Use and manufacturing of certain types of asbestos was outlawed in 1974. The re-construction and renovation of old buildings containing asbestos insulation products is now tightly regulated to protect workers from contracting asbestos-related diseases.
Honeywell also announced that it has reached an agreement with the negotiating subcommittee of the Asbestos Creditors' Committee on the trust distribution procedures to govern the NARCO claims process for both existing and future claims. In addition, Honeywell reported to the court that it had made significant progress in its discussions with the futures representative appointed by the court to represent the interests of future claimants.
"These are important steps toward resolving a significant portion of Honeywell's asbestos claims," said Honeywell's General Counsel Peter Kreindler. "The trust, if agreed to and approved, would provide claimants with a fair and expeditious way to receive compensation, and Honeywell would be able to bring closure to the NARCO litigation."
Last month, Honeywell said that, based on the current state of its negotiations with plaintiff's counsel representing NARCO asbestos claimants, it estimated a NARCO bankruptcy trust-related after-tax charge of approximately $900 million, net of anticipated insurance recoveries. The asbestos-related reserves are primarily linked to anticipated company contributions over time, net of insurance, that are associated with the 524 (g) trust process to resolve all current and future claims. Honeywell's estimate of its liabilities has not changed since that time.
Settlement payments with respect to current claims would be made over a four-year period. Contributions required to fund future claims would be capped at an annual level that would not have a material impact on Honeywell's operating cash flows Ð assuming the successful completion of ongoing settlement negotiations.
Honeywell owned NARCO, a manufacturer of high temperature bricks and cement, from 1979 to 1986. There were approximately 116,000 claims pending prior to NARCO's Chapter 11 filing in January 2002.
Honeywell is a diversified technology and manufacturing leader, serving customers worldwide with aerospace products and services; control technologies for buildings, homes and industry; turbochargers; automotive products; specialty chemicals; fibers; plastics; and electronic and advanced materials. Based in Morris Township, N.J., Honeywell is one of 30 stocks that make up the Dow Jones Industrial Average and is a component of the Standard & Poor's 500 Index. Its shares are traded on the New York Stock Exchange under the symbol HON, as well as on the London, Chicago and Pacific Stock Exchanges. For more information about Honeywell, visit www.honeywell.com.
This release contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934, including statements about future business operations, financial performance and market conditions. Such forward-looking statements involve risks and uncertainties inherent in business forecasts as further described in our filings under the Securities Exchange Act.
Contact:
Rich Silverman
973-455-4732