Quigley gets court OK of settlement resolving insurance dispute

By Jennifer Lanning Drey

Savannah, Ga., Jan. 14 - Quigley Co., Inc. received court approval of a settlement with Arrowood Indemnity Co. that resolves all disputes over Arrowood's obligations under its buyback insurance policies, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Under the settlement agreement, Arrowood will pay $4.75 million to Pfizer Inc. and Quigley and/or the asbestos PI trust.

As previously reported, Arrowood's predecessor, Royal Indemnity Co., issued liability insurance policies to Pfizer between October 1982 and October 1984 that provided coverage to Pfizer and Quigley.

The companies later entered into a dispute regarding the extent to which some of the buyback insurance policies provide coverage for asbestos-related claims, environmental claims and silica claims.

The settlement agreement will be implemented, in part, through the sale of all of the interests relating to the coverage for claims under the buyback insurance policies to Arrowood.

Arrowood has also agreed not to oppose confirmation of Quigley's plan of reorganization.

Quigley, a unit of Pfizer, filed for bankruptcy on Sept. 3, 2004. Its Chapter 11 case number is 04-15739.

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