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GENERAL50983
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Last modified
8/24/2016 8:37:25 PM
Creation date
11/23/2007 6:25:47 PM
Metadata
Fields
Template:
DRMS Permit Index
Permit No
M1977376
IBM Index Class Name
General Documents
Doc Date
6/19/1995
Doc Name
NOTICE OF HEARING ON MOTION BY REORGANIZED CF&I STEEL CORP 06/15/95 FOR ORDER AUTHORIZING
Media Type
D
Archive
No
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17. Thc terms of the EPA SeWement Agreement arc set forth in Ncir <br />entirety in Exhibit 1 and should be reviewed in detail, however, the more salient pointy tie <br />summarired u follows: <br />a. Subject to cuuin wnditions precedent, Rtorganired CFAeI shall <br />pay b the EPA the sum of Two Million Two Hundred Thousand <br />Dollars (f2,200,000); <br />b. Upon receipt by she EPA of Two Million Two Hundred <br />Thousand Dollar (f2,200,000), the United States acknowledges full <br />salisfaztion of, and releases and waives all claims wish respect lo, the <br />United Su W' Allowed Roebling Claim Against CF8r1, releases and <br />waives VI claims That the United Sates hss or may have to the <br />remainder of the Insurance Settlement Proceeds, waives and releases <br />any right m assert claims against txnain proceeds of sale of assert after <br />the Effective Dam of the Confirmed Plan, and acknowledges That is <br />hlcd no additional claims against the Debtors, except Ne United Stites' <br />Allowed Roebling Claim Against CFdrI, which is being fully satisfied, <br />and the 29th and Mad CLtim against Kansas Metals, which was <br />disallowed and estimated at f0. <br />c. The EPA wnxnn to settlements between CF&I and the <br />Insurance Companies of the Coverage Action and will not object Io <br />such settlements nor to a provision in certain of the underlying <br /> <br />_y <br /> <br />setUemenl agreements and in the Bankruptcy Coon's older approving <br />me setdemenrs, baiting any and all claims brought or Thar could be <br />brought by the PPA against certain of the Insurance Companies arising <br />out of or based on Undulying Claims. <br />In Ameri~n Emolpyers' Ins. Co. v. Kine Resources Co .556 F.2d 471, 475 <br />(10th Cir. 1977) the Tenth Circuit Court of Appeals approved a sera factor test enumerated by <br />the Uisl wort in wnnection wiN the settlement of litigation under the Bankruptcy Act. In <br />Reiss v. Harms-"n, 881 FZd. 890, 891 (IOtlr Cir. 1989) a e-rse under the Bankruptcy Codt, <br />the Twth Circuit acknowledged the ten factor lest of the Kine Resources Co. wse u <br />wnuolling in wnnalion with the approval of a sUUemwt and wmpromise under the <br />Bankruptcy Code, however, the Tenth Circuit in Reiss v. Naemann (waled particularly on <br />the issue of the likelihood of suttess and the upected expense and delay eased by <br />Iitiga0onr. Other of the ten facmn wuncialed in the Kine R N ~ ~• o ease Thal would <br />arguable apply to the proposed EPA Setlement Agreement include the number of parties That <br />object to the setlemenl, the wmpuency and experience of wunsel who support the <br />sUllemenl and the extent to which Ue settlement is Wly the product of arms length <br />bargaining. A bankruptcy wart's approval of a wmpromise may be disturbed only when it <br />rBenuse the case wu a very large, wmplex rase involving a seWement that was put <br />together over a period in ucess of two years and involved some forty (40) distinct <br />represenntive groups or panirs holding sharp, antagonistic and wn0icting interests, several <br />of the tw (10) factors enumerated tie not appliable to many settlemwn, including the <br />proposed EPA Settlement Agreement. <br />_g. <br />
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