Melrose's GKN Aerospace reaches $125m settlement for Garden Grove incident.
Melrose Industries shot higher on Tuesday as it said its GKN Aerospace unit had reached a $125m settlement with authorities in California over a chemical incident at its Garden Grove facility in May, and that it continues to expect a phased return to full capacity at the site in the fourth quarter.
Source: Sharecast
The settlement comprises a claims programme of up to $100m for eligible residents and businesses, civil enforcement penalties of $15m and claims received to date by emergency services and relevant authorities of $10m.
The settlement is contingent upon court approval and the claims programme is expected to open within days of court approval.
"Working alongside regulators, local authorities and other relevant stakeholders, GKN has made significant progress preparing the facility to resume full operations," the company said. "Subject to obtaining approval from the relevant authorities, GKN continues to expect a phased return to full capacity during the fourth quarter."
Separately, Melrose said it was engaged in ongoing mediation discussions regarding the various pending civil class action lawsuits.
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