S&P: Westar unaffected

Standard & Poor's said that Westar Energy Inc.'s (BB+/positive/--) agreement in principle to settle shareholder class action and derivative lawsuits relating to former management actions removes a degree of uncertainty regarding the company but has no affect on its ratings or outlook.

Under terms of the settlement, Westar will make a payment of $1.25 million and the company's insurance carriers will pay $31.25 million. The settlement is subject to various conditions, including court approval.

Although Westar agreed not to seek reimbursement from its insurance carriers for past or future legal costs related to these lawsuits or the criminal proceedings against certain former executives, the company can seek reimbursement from those former executives for legal expenses advanced to them or on their behalf following the conclusion of relevant proceedings.

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