Quigley $4.5 million insurance policy limits settlement approved

By Alice Popovici

New York, Oct. 13 - Quigley Co. Inc.'s settlement with parent Pfizer, Inc. and insurer HDI Industrie Versicherung AG was approved by the U.S. Bankruptcy Court for the Southern District of New York, according to a Tuesday filing.

As previously reported, Quigley said HDI issued the insurance policies in question to Pfizer, covering the policy years of 1979 through 1984. The policies provide coverage to Quigley as an additional insured.

As of Quigley's bankruptcy filing date, $5.23 million in applicable products/completed operations limits remained available to pay Pfizer's and Quigley's liabilities covered under the policies.

According to the settlement motion, the settlement resolves HDI's obligations in connection with the remaining limits through a stream of payments totaling $4.95 million. Payments will be paid over a five-year period in accordance with an annuity that HDI has obtained from MetLife, Inc.

Payments received under the MetLife annuity before the effective date of Quigley's plan of reorganization will be held in an insurance settlement proceeds trust to be contributed to the company's asbestos personal injury trust.

Payments received under the MetLife annuity after the effective date will be contributed directly to the trust.

HDI has also agreed not to oppose or appeal any plan confirmation.

Quigley, a unit of Pfizer Inc., filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

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