WASHINGTON—A U.S. bankruptcy judge has approved a $449 million settlement agreement between Travelers Cos. Inc. and ACandS Inc. in connection with the insulation contractor's asbestos-related claims against the insurer.
Under terms of the settlement, St. Paul, Minn.-based Travelers will pay the $449 million into an escrow account, which will be paid out along with any investment income at the conclusion of the bankruptcy, according to Gilbert Randolph L.L.P., the Washington law firm representing ACandS. In a statement issued Monday, Gilbert Randolph said the settlement paves the way for the Lancaster, Pa.-based company to emerge from bankruptcy reorganization.
In July when the settlement was announced, Travelers said it expects to obtain $84 million from its reinsurers and will fund the remaining $365 million from existing reserves.
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