Honeywell announces court approval of NARCO trust buyout

Honeywell has announced court approval of its buyout agreement with the North American Refractories Asbestos Personal Injury Settlement Trust, which provides for the elimination of Honeywell’s funding obligations to the Trust. Under the agreement and as previously announced, Honeywell will make a one-time, lump sum payment in the amount of $1.325B to the Trust, subject to certain deductions permitted under the buyout agreement. The buyout agreement was approved on December 8, 2022 by the United States Bankruptcy Court for the Western District of Pennsylvania. Upon the closing of the transactions in the buyout agreement, Honeywell will be released from its funding obligations to the Trust. With court approval of the buyout agreement, Honeywell will reduce the NARCO reserve ($695M as of September 30, 2022) to its estimate of claims-related amounts to be paid to the Trust through closing and will also recognize a charge associated with the Buyout Amount and a related balance sheet impact in the fourth quarter of 2022.