MINNEAPOLIS, June 24, 2014 /PRNewswire/ -- Entrprize Corp (Pink Sheets: ENTP) announced its progress in achieving a settlement with one of the parties in a multiple-party lawsuit brought against its indirect subsidiary, Metalclad Insulation LLC, in 2005.
Metalclad Insulation LLC and certain of its affiliates ("Metalclad"), which are direct and indirect subsidiaries of Entrprize Corp, were historically engaged in installing and removing asbestos insulation materials. As a result, Metalclad has been subject to numerous lawsuits alleging bodily injury from exposure to asbestos. As previously reported, since February, 2005, Metalclad has been involved in litigation (the "Lawsuit") with a number of historical insurers, including Hartford Accident and Indemnity Company, and several of its affiliates ("Hartford"), regarding whether, and to what extent, those insurers were and are responsible for indemnifying Metalclad against liability for alleged asbestos related injuries.
In an Information Statement dated April 9, 2014 (the "Information Statement"), sent out to all of our shareholders, we explained that Entrprize Corp had entered into a Settlement Agreement with Hartford on December 3, 2013. The Settlement Agreement settled the Lawsuit as between Metalclad and Hartford, but not the other insurers in the Lawsuit. The transactions called for by the Settlement Agreement were closed on March 26, 2014, subject to certain conditions which had to be met by June 24, 2014. Those conditions have been met, and on June 16, 2014, as part of the settlement, Entrprize Corp received $1,050,000 from Hartford ($3,000,000 called for by the Settlement Agreement, less $1,950,000 advanced to Metalclad by Hartford for operating expenses). In addition, Hartford paid $12,000,000 into an escrow account, up to $7,000,000 of which will be paid to Entrprize Corp upon the satisfaction of certain conditions described in the Information Statement, and the remainder paid over a five year period beginning one year after such conditions have been satisfied.
For various reasons, including those specified in the Settlement Agreement, the amount which may eventually be paid to Entrprize Corp out of the escrow account could be materially less than the amount deposited.
To obtain a copy of the Information Statement, which describes in more detail the transaction underlying the December 3, 2013, Settlement Agreement, please contact Brian Niebur at [email protected] to request a copy.
SOURCE Entrx Corporation