This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Statement By Tronox Limited Regarding Tronox Vs. Anadarko Ruling

STAMFORD, Conn., Dec. 12, 2013 /PRNewswire/ -- Tronox Limited (NYSE: TROX) today issued the following statement in response to the Dec.12, 2013, U.S. federal bankruptcy court ruling in the case Tronox Incorporated vs. Anadarko Petroleum Corp:

(Logo:  http://photos.prnewswire.com/prnh/20051118/TRONOXLOGO-a)

(In 2005, Tronox was created as a spinoff of the Kerr-McGee Corporation.  Kerr-McGee was subsequently acquired by Anadarko Petroleum Corp. Tronox Incorporated is the predecessor company of Tronox Limited.)

Ruling in favor of the plaintiff in Tronox Incorporated vs. Anadarko Petroleum Corporation, the United States Bankruptcy Court for the Southern District of New York found that Kerr-McGee acted with intent to delay and hinder Tronox's creditors when it spun off Tronox Incorporated.  The court found Anadarko liable and indicated an ultimate damages award of $14.5 billion, subject to a set off against claims that Anadarko filed as a creditor in Tronox Incorporated's 2009 bankruptcy filing.  The value of those claims will be determined following the submission of additional court papers.

Tronox will receive no immediate or direct benefit from the Dec. 12 ruling.  Instead, 88 percent of the judgment will go to trusts and other governmental entities to remediate polluted sites.  The remaining 12 percent of any funds ultimately received will be distributed to a tort trust to compensate individuals injured as a result of Kerr-McGee's environmental failures.

Tronox received a private letter ruling from the U.S. Internal Revenue Service confirming that the trusts that held the claims against Anadarko are grantor trusts of Tronox solely for federal income tax purposes.  As a result, subject to a final damages determination by the court and potential appeal, Tronox Limited should be entitled to tax deductions equal to the amount spent by the trusts to remediate environmental matters and to compensate the injured individuals.  These deductions will accrue over the life of the trusts as the funds received by the judgment are spent.  Tronox believes that these expenditures and the accompanying tax deductions may continue for decades, and therefore, it expects that this tax benefit may continue for a lengthy period, potentially amounting to hundreds of millions of dollars annually.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs