Halliburton asbestos deal sealed

PITTSBURGH - Halliburton, the world's largest oilfield-services company, says a bankruptcy judge has approved a US$1.5 billion ($2.1 billion) settlement of asbestos claims between two of its subsidiaries and insurers.

US Bankruptcy Judge Judith Fitzgerald in Pittsburgh approved the settlement yesterday between Halliburton's DII Industries and Kellogg Brown & Root and more than 150 insurance companies, Halliburton said in a statement.

Court approval cleared the way for Halliburton to complete a US$4.8 billion plan to settle all current and future asbestos claims. The settlement resolved a dispute between Halliburton and insurers over how much the company was entitled to for asbestos liability and was the result of decades of litigation and two years of mediation, Halliburton attorneys said when Fitzgerald tentatively approved the agreement on November 18.

"This is clearly one of the concluding steps toward permanently resolving our asbestos and silica liability that will provide payments to the impaired claimants," said Dave Lesar, chairman of Halliburton, in the statement.

Shares of Houston-based Halliburton rose 25USc to US$40.96 in New York trading. The news was released after the close of US markets.

DII and KBR unit filed for bankruptcy in 2003 to win court approval of settlements. The company agreed to pay $2.78 billion in cash, 59.5 million shares of common stock and notes worth $54 million to settle 462,000 current and future claims.

- BLOOMBERG