EnPro Industries on Tuesday announced that it has reached an agreement to settle the current and future asbestos-related insurance claims of EnPro subsidiaries against the vast majority of its solvent London-market companies.
As a result of the agreement, the London insurance companies and a U.S.-based insurer with policies reinsured through London will pay a total of $76.5 million to EnPro’s subsidiary, Coltec Industries Inc., and to an asbestos trust that will be established to resolve asbestos-related claims made against certain EnPro subsidiaries under policies subscribed by the carriers. The amount reflects present value and other negotiated discounts to the total insurance amounts. Coltec will also receive payment of slightly more than $1 million from an insolvent London carrier in connection with the settlement.
EnPro will receive $22 million from the settlement total relating to outstanding amounts for asbestos claims that EnPro asserts are owed to its subsidiaries by the settling insurers. EnPro expects to receive the funds in January 2005. The balance of the settlement total will be contributed to the asbestos trust. The settlement resolves all claims made against the settling London insurance companies by EnPro’s subsidiaries.
“With this agreement, we have resolved the disputes that led to the withholding of payments related to asbestos claims against our subsidiaries,” said Ernie Schaub, president and chief executive officer of EnPro. “We are pleased with the terms of the agreement, which is the second such agreement we have reached this year. Our insurance reimbursements from these carriers will be up to date when we receive the funds in January, and we are assured the remaining insurance coverage they provide will be available and paid when due.”
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