Tronox to pay $270m to resolve environment issues

23 November 2010 23:34  [Source: ICIS news]

HOUSTON (ICIS)--US titanium dioxide (TiO2) producer Tronox will pay $270m (€197m) and 88% of its interest in pending litigation to resolve its environmental liabilities, government agencies said on Tuesday.

Most of the $270m would be placed in five environmental trusts for the cleanup of numerous sites across the country, most of which have been contaminated with hazardous substances or hazardous waste, the Environmental Protection Agency (EPA) said.

Non-cash assets, such as insurance and financial assurance assets worth at least $50m, including property in Henderson, Nevada, would also be provided by Tronox to the environmental response trusts.

A US court confirmed Tronox’s reorganisation plan on 18 November. The plan would become effective after the court entered a written order and other conditions of the plan had been satisfied.

Tronox would also pay 88% of its interest in pending litigation against Andarko and Kerr-McGee over allegations that those companies imposed years worth of legacy liabilities on Tronox, including environmental obligations, that made the TiO2 producer insolvent.

($1 = €0.73)

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By: Brian Ford
+1 713 525 2653



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