Asarco requests court OK of $18.9 million asbestos insurance settlement

By Caroline Salls

Pittsburgh, July 26 - Asarco LLC requested court approval of an asbestos insurance settlement with some London market insurers that will pay the company $18.9 million, according to a Wednesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

According to the motion, the settlement amount represents nearly 80% of the outstanding policy limits for the policies associated with the settling carriers.

Under the settlement, the participating London market insurers will buy back their insurance rights in the policies for $18.9 million, to be placed in an interest bearing escrow account.

Asarco will indemnify the insurers against all claims brought by third parties related to the subject policies, and will enjoin all claims against the insurers during the Chapter 11 proceedings.

Asarco, a Tucson, Ariz., mining company, filed for bankruptcy on Aug. 9, 2005. Its Chapter 11 case number is 05-21207.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.