Huntsman Receives Additional Payment of $40 Million on Insurance Claim
December 31 2008 - 1:01PM
PR Newswire (US)
THE WOODLANDS, Texas, Dec. 31 /PRNewswire-FirstCall/ -- Huntsman
Corporation (NYSE:HUN) today announced it has received an
additional payment of $40 million from certain reinsurers relating
to an outstanding insurance claim resulting from the April 29, 2006
fire at its manufacturing facility in Port Arthur, Texas. Following
the fire, the facility was repaired and conveyed to Flint Hills
Resources in connection with Huntsman's sale of its U.S. commodity
chemicals businesses, but insurance claims arising from the fire
were retained by Huntsman. The payment announced today was received
in connection with a partial settlement with certain reinsurers.
Pursuant to the partial settlement, Huntsman's remaining claims for
insurance coverage relating to the April 29, 2006 fire with respect
to most of the reinsurers participating in the settlement will be
fully resolved through non-binding mediation and, if necessary,
binding arbitration. Huntsman previously paid its deductible on the
claim of $60 million. To date, reinsurers have paid $365 million to
Huntsman (including the $40 million announced today). Huntsman has,
additionally, claimed approximately $235 million as presently due
and owing and unpaid under its insurance policy for losses caused
by the fire. Huntsman anticipates filing additional claims as well.
Earlier this week, Huntsman also announced receipt of the final
payment of the $1 billion in payments made by affiliates of Apollo
Management, L.P. pursuant to a settlement agreement with Huntsman.
About Huntsman: Huntsman is a global manufacturer and marketer of
differentiated chemicals. Its operating companies manufacture
products for a variety of global industries, including chemicals,
plastics, automotive, aviation, textiles, footwear, paints and
coatings, construction, technology, agriculture, health care,
detergent, personal care, furniture, appliances and packaging.
Originally known for pioneering innovations in packaging and,
later, for rapid and integrated growth in petrochemicals, Huntsman
today has 13,000 employees and operates from multiple locations
worldwide. The Company had 2007 revenues of approximately $10
billion. For more information about Huntsman, please visit the
company's website at http://www.huntsman.com/. Forward-Looking
Statements: Statements in this release that are not historical are
forward-looking statements. These statements are based on
management's current beliefs and expectations. The forward-looking
statements in this release are subject to uncertainty and changes
in circumstances and involve risks and uncertainties that may
affect the company's operations, markets, products, services,
prices and other factors as discussed in the Huntsman companies'
filings with the U.S. Securities and Exchange Commission.
Significant risks and uncertainties may relate to, but are not
limited to, financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. In
addition, the completion of any transactions described in this
release is subject to a number of uncertainties and closing will be
subject to approvals and other customary conditions. Accordingly,
there can be no assurance that such transactions will be completed
or that the company's expectations will be realized. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws. DATASOURCE: Huntsman Corporation
CONTACT: Media, Russ Stolle, +1-281-719-6624, or Investors, Kurt
Ogden, +1-801-584-5959, both of Huntsman Corporation Web Site:
http://www.huntsman.com/
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