Honeywell to pay $1.3 billion to settle asbestos-related claims By Reuters

© Reuters. FILE PHOTO: Honeywell’s logo is pictured on its booth during the European Business Aviation Conference and Exhibition (EBACE) in Geneva, Switzerland, May 22, 2017. REUTERS/Dennis Balibus/File Photo

(Reuters) – Honeywell International (NASDAQ) said on Friday it will pay $1.3 billion to end asbestos-related claims arising from its former unit, helping it reduce its environmental liabilities.

The company said in a regulatory filing that the settlement, as part of a deal with the North American Asbestos Personal Injury Settlement Fund, will help the airline manufacturer cancel its financing obligations to the fund.

Honeywell said the one-time lump sum will have “limited obligations” to the fund after the transaction closes.

The company’s previous unit, North American Refractories Company (NARCO), filed for bankruptcy in 2002 after facing lawsuits over asbestos-related illnesses. After the bankruptcy, Honeywell created the Compensation Fund to settle billions of dollars in asbestos claims.

Honeywell, which owned NARCO from 1979 to 1986, said NARCO’s $695 million reserve will be removed from the company’s balance sheet and the fee recognized once the deal is approved by the bankruptcy court.

Additionally, the North Carolina-based company reaffirmed its previously announced full-year and fourth-quarter outlook.