AIG To Pay $42.5 Million For Environmental CleanupJan 09,2008 00:00 by dow-jonesThe Department of Justice said American International Specialty Lines Insurance Co., a member company of American International Group Inc. (AIG), will pay $42.5 million to clean up four contaminated sites in New Jersey, Michigan and Tennessee that were formerly owned by Fruit of the Loom. The settlement calls for an initial payment of $30 million plus interest accrued since May 15, and 10 annual payments of $1.25 million. "We are pleased to bring this matter to a conclusion on terms that are mutually agreeable to all of the parties involved, including the Department of Justice," said Chris Winans, a spokesman for AIG. Trusts formed from the bankruptcy of Fruit of the Loom in 1999 tried to collect cleanup costs from AIG, a New York investment firm, under the insurance policy with AISLIC. AISLIC denied coverage and sued the trusts in 2005. The settlement, according to the Justice Department, brings a resolution to all active litigation involving the cleanup,which included the trusts and AISLIC, as well as four other government agencies, including the Environmental Protection Agency. ------------------------------------------------------------------------------------------ Source: Dow Jones Newswires Presented by InsuranceHeadlines.com |