Printer Friendly

ADVERSE PRE-TRIAL RULINGS IN TEXAS LITIGATION UNDER APPEAL BY IMC FERTILIZER

 NORTHBROOK, Ill., March 19 /PRNewswire/ -- IMC Fertilizer Group, Inc. (NYSE: IFL) announced today that it has filed for immediate Texas Appellate Court review of several recent pre-trail rulings, along with an earlier ruling, which together adversely affect and limit the company's defense in litigation related to a 1991 plant explosion.
 IMC Fertilizer's pending trial in a Houston court stems from the May 1991


explosion at a Sterlingotn, La., nitroparaffin plant owned by Angus Chemical Company but operated by the company. In its lawsuit against IMC Fertilizer, Angus Chemical and its insurer seek to recover damages for property loss and business interruption allegedly suffered and claimed to approximate $280 million. Angus Chemical also is seeking punitive damages. The trial is scheduled to begin March 23. The company continues to reject the claims of Angus Chemical and its insurer, and intends to continue to vigorously defend its limited liability position.
 All of IMC Fertilizer's insurers initially denied coverage and refused to unconditionally pay settlements. On March 17, however, one insurer reached an agreement with the company. IMC Fertilizer has filed an action against one of its remaining insurance carriers in Texas court, and is in arbitration with a third insurer. The company has informed this third insurer that IMC Fertilizer is prepared to take other actions, as necessary, if the insurer continues to deny coverage.
 In a related development, the company agreed last month to pay $32.7 million to settle all personal injury claims in the Texas litigation. Other personal injury lawsuits, however, remain unresolved in Louisiana courts.
 Without a satisfactory settlement with Angus Chemical and its insurer, or additional insurance proceeds and support from the company's lenders, the company cannot predict whether these matters will have a material adverse effect upon IMC Fertilizer's financial condition.
 -0- 3/19/93
 /CONTACT: John E. Galvin, financial, 708-205-4814, or Thomas C. Pasztor, media, 708-205-4801, both for IMC Fertilizer, Inc./
 (IFL)


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

LD -- NY075 -- 8117 03/19/93 18:43 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Mar 19, 1993
Words:337
Previous Article:DUPAGE COUNTY (ILL.) GENERAL OBLIGATION REFUND BONDS RATED 'AAA' BY FITCH -- FITCH FINANCIAL WIRE --
Next Article:E-II REACHES SETTLEMENT WITH MCCRORY PARENT CORP. CREDITORS' COMMITTEE
Topics:


Related Articles
IMC FERTILIZER SIGNS AGREEMENT TO BUY CONSERV PHOSPHATE PLANT
IMC FERTILIZER REPORTS FIRST QUARTER EARNINGS
IMC FERTILIZER DECLARES DIVIDEND
IMC FERTILIZER SAYS SECOND QUARTER EARNINGS HURT BY WEAK PRICES AND HARVEST DELAYS
HEDBERG RETIRING FROM TOP MARKETING POST AT IMC FERTILIZER GROUP, INC.
ANG ANNOUNCES SUBSIDIARY ENTERS INTO AGREEMENT
ANGUS ANNOUNCES AGREEMENT ON SUIT
IMC FERTILIZER REACHES SETTLEMENT WITH INSURERS, RESOLVING CANADIAN LITIGATION
IFL COMPLETES FINANCIAL RESTRUCTURING
IMC FERTILIZER STOCKHOLDERS TOLD CURRENT OPTIMISM MUST BE TEMPERED BY NEED FOR PRICE INCREASES

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters