Laidlaw, Safety-Kleen reach agreement
Jul 19, 2002 12:00 PM
Laidlaw Inc, Burlington ON, Canada, and Safety-Kleen Corp, Columbia SC, have announced that through a court approved mediation process they have reached an amicable resolution of all claims the companies have asserted against each other.
Among other things, the settlement resolves Laidlaw's $6.5 billion claim against Safety-Kleen, Safety-Kleen's $13.8 billion claim against Laidlaw, claims by the secured lenders of Safety-Kleen of $6.3 billion against Laidlaw, and claims by certain officers and directors of each company against the other company.
"Resolution of the dispute between Safety-Kleen and Laidlaw is a significant step in the process of ensuring Laidlaw's orderly exit from bankruptcy," said Stephen F Cooper, Laidlaw chief restructuring officer. "This settlement agreement will avoid months of costly litigation."
The mediation involved both companies and their major creditor groups. A settlement agreement reflecting the resolution was finalized July 19. The companies have agreed to work together to obtain necessary approvals from the respective bankruptcy courts in which Laidlaw and Safety-Kleen have filed for protection.
"We are glad that we were able to reach resolution through the mediation process," said Ronald A Rittenmeyer, Safety-Kleen chairman, chief executive officer and president. "We believe this settlement is in the best interests of all the affected parties, and it represents another important step forward in Safety-Kleen's efforts to emerge from bankruptcy by the end of this year."