World Fuel Services Corporation Announces Lac-Mégantic Settlement
June 08 2015 - 4:05PM
Business Wire
World Fuel Services Corporation (NYSE: INT) today announced that
it has entered into a settlement agreement with the Trustee for the
U.S. bankruptcy estate of Montreal, Maine & Atlantic Railway
Ltd. (the “Trustee”), Montreal, Maine and Atlantic Canada Co.
(“MMAC”), and the monitor in MMAC’s Canadian bankruptcy to resolve
claims arising out of the July 2013 train derailment in
Lac-Mégantic, Quebec.
Under the terms of the settlement agreement, which is subject to
approval by the creditors and courts involved in the U.S. and
Canadian bankruptcies, the company will contribute US$110 million
to a compensation fund established to compensate parties who
suffered losses as a result of the derailment. The company expects
that the full settlement amount will be covered by insurance. As
part of the settlement, the company will also assign to the Trustee
and MMAC certain claims it has against third parties arising out of
the derailment.
In consideration of the settlement amount and the assignment of
claims, the company and its affiliates, as well as the company’s
former joint ventures, DPTS Marketing, LLC and Dakota Petroleum
Transport Solutions, LLC and each of their affiliates (the “WFS
Parties”), will receive the benefit of the global releases and
injunctions barring claims against the WFS Parties set forth in the
respective bankruptcy plans filed by the Trustee in the U.S. and by
MMAC in Canada. The Province of Quebec and other key creditors in
the bankruptcies have consented to the settlement.
“We believe that participating in the settlement and
contributing to the compensation fund is in the best interests of
our shareholders and will also aid in providing closure to those
affected by this tragic accident,” said Michael J. Kasbar, chairman
and chief executive officer. “The entire community of Lac-Mégantic
remains in our thoughts and prayers as they continue to recover
from this tragedy.”
Additional information regarding the settlement can be found in
the company’s current report on Form 8-K filed with the Securities
and Exchange Commission at: www.sec.gov.
Information Relating to Forward-Looking
Statements
This release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements regarding the settlement
agreement and nature of the settlement, and our expected insurance
recovery. These forward-looking statements are qualified in their
entirety by cautionary statements and risk factor disclosures
contained in the company’s Securities and Exchange Commission
(“SEC”) filings, including the company’s Annual Report on Form 10-K
filed with the SEC on February 12, 2015. Actual results may differ
materially from any forward-looking statements due to risks and
uncertainties, including, but not limited to: whether the
bankruptcy plans, including our settlement agreement, are approved
by the creditors and receive final approval from the courts
involved in the U.S. and Canadian bankruptcies, our ability to
recover from our insurance carriers, any unforeseen litigation and
other costs related to the incident that may arise in the future,
as well as the other risks detailed from time to time in the
company’s SEC filings. New risks emerge from time to time and it is
not possible for management to predict all such risk factors or to
assess the impact of such risks on our business. Accordingly, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
changes in expectations, future events, or otherwise.
About World Fuel Services
Corporation
Headquartered in Miami, Florida, World Fuel Services is a global
fuel logistics, transaction management and payment processing
company, principally engaged in the distribution of fuel and
related products and services in the aviation, marine and land
transportation industries. World Fuel Services sells fuel and
delivers services to its clients at more than 8,000 locations in
more than 200 countries and territories worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel
management. Aviation customers include commercial airlines, cargo
carriers, private aircraft and fixed base operators (FBOs), as well
as the United States and foreign governments. World Fuel Services'
marine customers include international container and tanker fleets,
cruise lines and time-charter operators, as well as the United
States and foreign governments. Land customers include petroleum
distributors, retail petroleum operators, and industrial,
commercial, residential and government accounts. The company also
offers transaction management services which consist of card
payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150608006522/en/
World Fuel Services CorporationIra M. Birns,
305-428-8000Executive Vice President & Chief Financial
Officer
World Fuel Services (NYSE:INT)
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