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TPC Group seeks approval of $750 million settlement with insurers
By Sarah Lizee
Olympia, Wash., Nov. 14 – TPC Group Inc. is seeking approval of a settlement with certain insurers, according to a motion filed Friday with the U.S. Bankruptcy Court for the District of Delaware.
“The settlement agreement resolves an almost-three-years-long, highly contested insurance dispute concerning an extraordinarily complex insurance asset at a high value for the debtors,” the company said in the motion.
The facility was insured by an all-risk property and time element insurance program from July 1, 2019 to July 1, 2020, with total limits of $850 million. A syndicate of over 20 insurers participated in the program, which consists of 16 policies.
Following an explosion at the facility in November 2019, TPC submitted a first-party insurance claim under the policies. However, the debtor and insurers disagreed significantly on the value of the claim.
Since then, the debtor and insurers have been engaged in years of investigation, adjustment and negotiation over the claim.
The settlement agreement resolves the claim for a value of $750 million, amounting to nearly 90% of the available limits under the policies.
The total settlement amount, which is in exchange for a full and final release of all claims against the insurers relating to the loss or the PLC claim, consists of amounts already paid to the debtors to date and an additional cash settlement payment to the debtors in the amount of $290.3 million.
TPC Group is a Houston-based processor and service provider of value-added products derived from niche petrochemical raw materials. The company filed bankruptcy on June 1 under Chapter 11 case number 22-10493.
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