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Halliburton's KBR, DII exit bankruptcy

Halliburton Monday said its subsidiaries Kellogg Brown & Root and DII Industries have emerged from the bankruptcy proceedings they entered a year ago to facilitate a $4.2 billion asbestos settlement.
/ Source: Reuters

Oilfield services company Halliburton Co. Monday said its subsidiaries Kellogg Brown & Root and DII Industries have emerged from the bankruptcy proceedings they entered a year ago to facilitate a $4.2 billion asbestos settlement.

The company said a U.S. bankruptcy court's approval of its reorganization plan for the units and the settlement of asbestos and silica exposure claims had become final and unappealable, allowing the units to operate without court supervision.

"I am pleased that we have taken our final step and permanently resolved our asbestos liability," Dave Lesar, Halliburton's chairman, president and chief executive officer of Halliburton, said in a statement.

"The asbestos chapter in Halliburton's history is closed," he added.

Under its settlement with 370,000 asbestos claimants and 21,000 silica claimants, Halliburton will pay about $2.8 billion in cash and 59.5 million shares of its stock into a trust fund to compensate current and future victims.

Halliburton said it expects to fund trusts for current and future asbestos and silica claimants by the end of January.