Halliburton obtains extension of order putting asbestos cases on hold

By Carlise Newman

Chicago, July 21 - Halliburton said an agreement was reached among DII Industries, Harbison-Walker Refractories Co. and the official committee of asbestos creditors for the extension of the court's temporary restraining order until Sept. 30.

The court's temporary restraining order stays more than 200,000 pending asbestos claims against DII Industries.

The restraining order will expire if a prepackaged Chapter 11 filing by Halliburton's subsidiaries DII Industries, Kellogg Brown & Root and some of their subsidiaries is not made on or prior to Sept.30.

The parties retain the right to request the bankruptcy court to extend the stay beyond September.

Other terms of the agreement require DII Industries to fund the remaining $30 million under the existing debtor-in-possession financing to Harbison-Walker by July 31 and DII Industries to purchase $50 million insurance receivable from Harbison-Walker. The agreement requires DII Industries to purchase the insurance receivable on the earliest of the effective date of a Harbison-Walker reorganization plan, the effective date of a DII Industries reorganization plan or Dec. 31.

The agreement will be presented for the Harbison-Walker bankruptcy court's approval at a status conference held July 22. Oral arguments, previously scheduled for July 21,will not be held.

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