Kaiser Aluminum seeks court OK of $4.5 million asbestos insurance coverage settlement

By Caroline Salls

Pittsburgh, July 5 - Kaiser Aluminum Corp. requested court approval of a $4.5 million asbestos insurance coverage settlement agreement with Royal Indemnity Co., according to a Wednesday filing with the U.S. Bankruptcy Court for the District of Delaware.

In May 2000, Kaiser filed an action claiming that several insurers, including Royal, are obligated to cover asbestos-related bodily injury product liability claims spanning the period from 1959 to 1985.

According to the filing, Kaiser's products coverage action also seeks damages for breach of contract against several insurers.

This settlement relates to a policy issued by Royal providing coverage from April 1, 1983 to April 1, 1984.

In exchange for the $4.5 million payment from Royal, Kaiser has agreed to dismiss Royal from the coverage action and release all of its rights under the policy in question.

A hearing is scheduled for Aug. 21.

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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