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IMC FERTILIZER REACHES SETTLEMENT WITH INSURERS, RESOLVING CANADIAN LITIGATION

 NORTHBROOK, Ill., May 28 /PRNewswire/ -- IMC Fertilizer Group, Inc. (NYSE: IFL) announced today it has reached a settlement with its insurers resolving a dispute over insurance coverage related to water inflow damages at one of the company's Canadian potash mines.
 As a result of the settlement, insurers will pay IMC Fertilizer Cdn.$130.4 million subject to final documentation, including the timing of payments. From these proceeds, the company will reimburse Potash Corporation of Saskatchewan, Inc. (PCS) an estimated Cdn.$27.3 million for amounts that PCS contributed under an agreement with the company. From the remainder, the company will pay a previously declared dividend to IMCERA Group Inc. of U.S.$51.9 million relating to amounts it paid for water inflow control prior to the initial public offering of IMC Fertilizer Group. As a consequence of the above plus expected tax refunds to be received during the next year, the company will realize approximately U.S.$45 million.
 At March 31, 1993, the company had a recorded insurance claim receivable, net, related to this litigation of U.S.$134.2 million. Accordingly, the company will record a charge to operating results and shareholders' equity of approximately U.S.$12 million, after giving effect to the reimbursement to PCS and taxes.
 "This settlement represents a positive outcome for IMC Fertilizer," said Wendell F. Bueche, president and chief executive officer. "It resolves what was expected to be a protracted litigation and eliminates the risk inherent in any lawsuit."
 IMC Fertilizer's two Canadian potash mines, and their adjoining processing facilities, are located near Esterhazy, Saskatchewan. Annual production capacity is 4.2 million tons of finished product. The settlement resolves litigation stemming from the inflow of water into one of these two inter-connect potash mines. Since the inflow began in December 1985, IMC Fertilizer has suffered property damage and business interruption losses. The mine continues to operate with pumping of water from several underground locations. Insurance against future underground water damage is not available to the Canadian potash mining industry.
 -0- 5/28/93
 /CONTACT: John E. Galvin (financial), 708-205-4814, or Thomas C. Pasztor (news media), 708-205-4801, both of IMC Fertilizer/
 (IFL)


CO: IMC Fertilizer Group, Inc. ST: Illinois IN: CHM SU:

TM-PS -- NY066 -- 3593 05/28/93 18:34 EDT
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Publication:PR Newswire
Date:May 28, 1993
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