Boston, MA 09/03/2014 (wallstreetpr) – Provider of oilfield services to exploration companies, Halliburton Company (NYSE:HAL) disclosed that it had struck a deal with most of the plaintiffs claims in respect of oil spill case in Mexico in April 2010. As a result, the company would be paying about $1.1 billion as settlement claims, including legal charges.
However, the agreement requires the U.S. District Court of Louisiana approval, a statement issued by Halliburton indicated. Halliburton Company (NYSE:HAL) said that the money would be paid into a trust till every appeal has been settled in three installments spreading a two-year period. It also said that it had made a provision of $1.3 billion in respect of potential losses from the multi-district litigation proceedings. Therefore, the settlement figure is lower than the predicted figure and should be a big relief to the company.
Agreement Details
Halliburton said that the agreement included claims assigned by BP plc (ADR) (NYSE:BP) in the settlement class of April 2012 agreement; and claims of punitive damages by a class of plaintiffs against the company alleging either to the property or commercial fishing industry due to the Deepwater Horizon incident.
Halliburton Company (NYSE:HAL) also indicated that the latest deal allows them of no liability for compensatory damages in respect of the settlement class of April 2012 agreement with BP.
Payment In Trust
Halliburton Company (NYSE:HAL) disclosed that pending the finalization of the deal, which is subject to the final approval of the court, it will place the amount in the trust to be paid in three installments spanning a two-year period. Halliburton said that the payment would be made till all claims were settled, which includes, the BP 2012 deal; the contractual immunity given by BP are enforceable and valid and the previous dismissal of economic damage claims against the company by the District Court.
Halliburton Company (NYSE:HAL) had also indicated that the settlement agreement stands terminated in case the current claimants failed to participate in the settlement.
