Honeywell to Fund Asbestos Trust With $1.3 Billion

To eliminate future funding obligations, Honeywell International Inc. has agreed to a one-time, lump sum payment of $1.325 billion to the asbestos trust fund it first established in 2013. If approved by the U.S. Bankruptcy Court for the Western District of Pennsylvania, the buyout agreement would likely end any additional asbestos-related liabilities for Honeywell. The payment is a significant investment toward future financial stability for the industrial giant, which is based in Charlotte, North Carolina. Honeywell’s costly asbestos trust fund obligation stems from North American Refractories Company, which it owned from 1979 to 1986. NARCO was once one of America’s largest manufacturers of asbestos refractory materials. It created heat-resistant products for Honeywell that were used to line high-temperature equipment . Although asbestos was once used widely for its strength and heat resistance, its toxicity led to serious health problems – including mesothelioma cancer – for those who worked with the products. It has led to decades of costly legal ramifications. Honeywell Payout Will Resolve Legal Battle Asbestos litigation drove NARCO into bankruptcy in 2002, leaving Honeywell responsible for future damages. The North American Refractories Asbestos Personal Injury Settlement Trust was created in 2013. It has paid out an estimated $523 million, periodically funded by Honeywell, to those harmed by NARCO asbestos products. The harm caused by N...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Tags: Asbestos Exposure Legal Trust Funds Source Type: news