The buyout agreement between Honeywell (NASDAQ: HON) and the North American Refractories Asbestos Personal Injury Settlement Trust (the “Trust”), which eliminates Honeywell’s funding commitments to the Trust, has been approved by a court, the company reported. According to the terms of the agreement and as previously disclosed, Honeywell will give the Trust a one-time payment in the amount of $1.325 billion (the “Buyout Amount”), less any deductions allowed by the buyout agreement. The Western District of Pennsylvania’s US Bankruptcy Court accepted the buyout agreement on December 8, 2022. Honeywell will be relieved from its funding obligations to the Trust following the completion of the transactions outlined in the buyout agreement. Honeywell will reduce the NARCO reserve ($695 million as of September 30, 2022) to its estimated claims-related amounts to be paid to the Trust through closing if the buyout agreement is approved by the court. Honeywell will also record a charge for the Buyout Amount and a corresponding balance sheet impact in the fourth quarter of 2022.

Source: Prnewswire