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without priority against CF&7 in the amount of 527,098,870 with ruprxe b the Roebling <br />Claim Against CF&I (hereinafter Ihe'United Stale' Allowed Raebling Claim Against <br />CF&1'). <br />K. CPki his berm involved in wvenge litigation against Aetna Casualty & <br />Surety Company, Amuiran Home Assunnrx Company, Conrincmal Insurance Company, <br />Fireman's Pund Nautance Company, Narifocd Accidem and Indemnity Company, Insurarce <br />Company o[ NoM America and Security Insurance Company (celleclively Ure 'Insurance <br />Companies') in the mates of ~6GI C..,~~'~I Comomlian vs. Aetna Casezp~ & Sureiv ~m nv <br />f{al„ Superior Court of New Jersey, law Division, Mercer County, I)ockU No. L89-0170 <br />(the'Coverage Action'). <br />L. In the Coverage Action, CF&I altegod, inter olio, that certain liability <br />insurance policies required Ne Insurance Companies to indemnify and defend CF&1 with <br />respat b arum chums made against CF$I by the Unfired Sutrs, various sate and local <br />govunment environmenul agencies, including without IimiUtion the New York Sure <br />Department of Fnvironmenul Conswation ('NYSDFC'), and various private partiu Uut <br />have alleged Uus CFdrl is liable for Derain dleged property damage at and from the <br />Roebling Steel Supecfitnd Site and in New Yorlc (the 'Undulying Claims'). <br />M. The Umlulymg Claims have now ban resolved in CFEcI's bankruptcy <br />case u general unsecured prepefiuon claims without priority u described in Racial 7 and u <br />follows: <br />-0- <br />NYSDEC (Withdrawn) 0 <br />Niagara Mohawk Power SW 000 <br />Corporation <br />5500,000 <br />N. CF&f has now resolved the Coverage Action with the Insurance <br />Companies and under the various selUemeer agreements, all but one of which arc still aubjal <br />b Ranknrp(cy Court approval, CF&I wiR receive 54,3110,000 in the aggmgale N net <br />sUUement proceeds' (the 'Insurance Sedlematt Proceeds'), assuming eanlmrplcy Court <br />approval and the consummation of all the sUUement agreements. Of Ne Insurance <br />Seldemenl Proceeds, CF&1 intends b hold in Wst f2,200,000 for the benefit of the United <br />Suns, subject to obtaining a final, non-appealable order of the IsanWp[cy Court approving <br />this Settlement Agrament. <br />O. The United Sutea' Allowed Roebling Claim Against CF&I was the ''salt <br />of a full sGUement of Ne Roebling Claim Against CF&I. On at lent two (2) occasions' the <br />United Scales his uken the position Thar i1 is a beneficiary under the various insurance <br />policiu issued by the Insurance Companies and is entiUtd ro Ne Insurance Settlement <br />'The aggregate gross settlement amount is S4,b00,000, however, one of Ne Insurance <br />Companies is endued pursuant b the seWemenr agreement with that Insurance Company, b <br />draw on letters of credit provided by CF&I in the amount of 5300,000, thereby reducing (tro <br />net suUement b 54,300,000. <br />aAC the hearing on confirmation of Debtor's and Railroad 'trustee's First Amended and <br />Resisted Joint Plan of Reorganization and at the hearing concerning the senlemem of <br />Coverage Action against American Home Assurance Company, the United Sutcs took Ne <br />position that it was entitled to the Coverage Action ultkment procads. <br />-5- <br />/ .. <br />