company agreedHoneywell International(Honeywell International) has agreed to pay about $1.3 billion to end payments related to claims related to its past production of materials containing asbestos, a known carcinogen, marking a move by the industrial giant to reduce its liabilities. environmental.
Honeywell said Friday in a regulatory filing that the manufacturer has entered into an agreement with the North American Refractory Asbestos and Refractory Personal Injury Settlement Trust Fund that will free it from other financing obligations; You will pay the amount in one payment, and the company will have “limited obligations” towards the fund after the deal is completed.
Payment of the company’s obligations
The agreement will be part of a long effort to identify and pay the company’s liabilities arising from asbestos, pollution and other environmental issues associated with past operations, including the cleanup of Lake Onondaga near Syracuse, New York.
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The agreement is subject to a final order in the US Bankruptcy Court for the Western District of Pennsylvania and will resolve all outstanding lawsuits between Honeywell and the trust.
If approved, Honeywell said the existing reserve of $695 million would be removed from its balance sheet and the fine recognized. Honeywell will also have the right to collect proceeds from insurance policies covering its fiduciary obligations and has recognized these proceeds as receivables.
“Honeywell hopes the bankruptcy court will agree to a settlement so that we can permanently terminate the liability on our books,” the company said in a statement.
The manufacturer also reaffirmed its earnings guidance for the fourth quarter and the full year, assuming that accounting impacts do not affect its 2022 financial statements. Its shares were little changed at 3:33 p.m. in New York.