Honeywell to pay $1.325B to settle NARCO asbestos obligations; court approves buyout

HONEYWELL INTERNATIONAL INC

Bankruptcy Court on Dec 8 approved Amended Buyout Agreement for Honeywell to pay $1.325B lump sum to the NARCO Trust.
Payment releases Honeywell from all future obligations to fund trust claims and annual operating expenses (~$21M in 2021).
Closing expected as promptly as practicable after Jan 1, 2023; NARCO channeling injunction remains in effect.
Honeywell reduces NARCO reserve of $695M and recognizes a Q4 2022 charge, partially offset by ~$300M net proceeds from HWI sale to Platinum Equity.
Trust's economic rights in HWI sale proceeds inure to Honeywell under the buyout agreement.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

HONEYWELL INTERNATIONAL INC entered into Amended and Restated Buyout Agreement with North American Refractories Asbestos Personal Injury Settlement Trust, NARCO Trust Advisory Committee, Lawrence Fitzpatrick as NARCO Asbestos Future Claimants Representative valued at $1.325 billion (effective 2022-11-20).

Action: entry
Agreement: settlement
Counterparty: North American Refractories Asbestos Personal Injury Settlement Trust, NARCO Trust Advisory Committee, Lawrence Fitzpatrick as NARCO Asbestos Future Claimants Representative
Value: $1.325 billion
Effective: 2022-11-20

Exact text from the filing

On November 18, 2022, Honeywell entered into a definitive agreement (the “Buyout Agreement”) with the North American Refractories Asbestos Personal Injury Settlement Trust (the “Trust”), and on November 20, 2022, in exchange for the NARCO Trust Advisory Committee (the “TAC”) and Lawrence Fitzpatrick, in his capacity as the NARCO Asbestos Future Claimants Representative (the “FCR”), becoming parties to the Buyout Agreement, Honeywell, the Trust, the TAC, and the FCR entered into an Amended and Restated Buyout Agreement (the “Amended Buyout Agreement”).

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Source: SEC EDGAR

accession 0001193125-22-304797

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