4/25/05 - CONSENT AGREEMENT ISSUED. ON AUGUST 9, 2002, THE U.S. BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE APPROVED A SETTLEMENT AGMT IN IN RE FRUIT OF THE LOOM, INC. NO. 99-4497, BETWEEN THE U.S. ON BEHALF OF THE EPA, THE DEPARTMENT OF INTERIOR, THE NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION, AND THE NUCLEAR REGULATORY COMMISSION, AND THE STATES OF MICHIGAN, NEW JERSEY, TENNESSEE, AND ILLINOIS, DEBTORS FRUIT OF THE LOOM, INC., AND NWI LAND MANAGEMENT INC., AND RESPONDENTS VELSICOL CHEMICAL CORP AND TRUE SPECIALTY CORP. ( VELSICOL ).
PARAGRAPH 15 OF THE BANKRUPTCY SETTLEMENT AGREEMENT PROVIDED THAT VELSICOL COULD REQUEST THAT THE GOVERNMENTAL PARTIES ENTER INTO AN ABILITY TO PAY SETTLEMENT WITH RESPECT TO THE REQUIREMENT ADDITIONAL PAYMENT UNDER PARAGRAPH 15 (ADDITIONAL PAYMENT BY VELSICOL IN THE EVENT THAT THE TRUST HAD NOT RECEIVED FUNDING BY DECEMBER 31, 2004). ON AUGUST 28, 2002, EPA REGION 4 AND VELSICOL ENTERED INTO AN AGMT AND SETTLEMENT FOR RECOVERY OF RESPONSE COSTS, EPA DOCKET NO. 00-51-C, WHICH PROVIDED FOR THE PAYMENT OF $650,000 FROM THE VELSICOL ENVIRONMENTAL TRUST FUND TO EPA REGION 4, WHICH PAYMENT WAS RECEIVED ON OR ABOUT AUGUST 4, 2004. PARAGRAPH 15 OF THE EPA REGION 4 AGMT ALSO REQUIRED VELSICOL TO MAKE ADDITIONAL PAYMENTS TOTALING $1,377,935.27 ON JANUARY 2, 2005, PLUS ACCRUED INTEREST. VELSICOL HAS REQUESTED THAT THE GOVERNMENTAL PARTIES ENTER INTO THIS AGMT IN ORDER TO RESOLVE, BASED ON ABILITY TO PAY, ANY FURTHER LIABILITY THAT VELSICOL