Kaiser Aluminum granted court OK of asbestos coverage liability settlement agreement

By Caroline Salls

Pittsburgh, June 19 - Kaiser Aluminum Corp. obtained court approval of a settlement agreement with American Re-Insurance Co. and Executive Risk Indemnity Co. in connection with asbestos and other liability coverage disputes, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

In May 2000, Kaiser filed an insurance coverage action against several insurance companies, including American Re and Executive Risk, seeking a judgment that the insurers are obligated to cover asbestos-related bodily injury products liability claims that were asserted against Kaiser for the period of 1959 to 1985.

American Re and Executive Risk issued policies that provide excess insurance coverage for the years 1978 to 1985, including coverage for channeled personal injury claims.

Under the settlement agreement, the insurance companies will pay $5.5 million. In exchange, Kaiser will release all of its rights under the policies and agreed to dismiss American Re and Executive Risk from the coverage action.

Kaiser, a Houston-based aluminum company, filed for bankruptcy on Feb. 12, 2002. Its Chapter 11 case number is 02-10429.

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