Goodyear to Receive Insurance Settlement
AKRON, Ohio, April 19 -- The Goodyear Tire & Rubber Company announced today that it will receive $22 million in an insurance settlement for asbestos and pollution related claims previously filed by the tiremaker. The $22 million will be paid by Lloyd's Underwriters reinsured by Equitas Limited in the second quarter of 2005.
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Additionally, Equitas will place $39 million into a trust fund that can be used to reimburse Goodyear for costs it incurs in the future to resolve certain asbestos claims. However, if federal asbestos reform legislation is enacted before January 3, 2007, Equitas may have the right to some or all of the funds remaining in the trust. If no legislation is enacted by then, the remaining funds will be paid to Goodyear.
While the specific terms of the April 13, 2005 settlement are confidential, it provides for the payments to Goodyear in exchange for a complete termination of the underwriters' obligations under their pre-1993 policies.
For additional information regarding the settlement, please refer to the Form 8-K filed by Goodyear today.
Goodyear is the world's largest tire company. Headquartered in Akron, Ohio, the company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. It has marketing operations in almost every country around the world. Goodyear employs more than 80,000 people worldwide.
Certain information contained in this press release may constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various factors, including the enactment, if any, of federal asbestos legislation, as well as the factors discussed in the company's filings with the Securities and Exchange Commission, including its Form 10-K for the year ended Dec. 31, 2004. In addition, any forward-looking statements represent our estimates only as of today and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change.
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