Arkansas Nitric Acid Plant Explosion Claims Settled

LSB Industries, Inc., a manufacturing and marketing company, previously reported that it filed an insurance claim for losses and damages in connection with the May 15, 2012, explosion of a reactor in the 98 percent strength nitric acid plant at the Company’s chemical facility located in El Dorado, Ark.

The company’s insurance carriers previously paid $60 million on the claim. Effective October 23, 2013, the company settled the claim with its insurance carriers for the aggregate amount of $113 million, comprised of $60 million previously paid and $53 million to be paid within 30 days from October 23, 2013. The $113 million settlement amount is net of the company’s $1 million insurance deductible.

This insurance claim conclusion does not include the pending insurance claim regarding a pipe rupture that occurred in November, 2012 at the Cherokee, Ala., location. The Cherokee plant insurance claim is currently being adjusted by the company’s insurers.

Source: LSB Industries, Inc.