The company said it entered into a Settlement and Plan Support Agreement (PSA) with KFI Wind-Down Corp., the Official Committee of Unsecured Creditors and the MDL PEC Co-Leads on October 18, 2024. The company said the PSA does not constitute an admission of liability or wrongdoing.

1. 01

   The company said it entered into a Settlement and Plan Support Agreement (PSA) with KFI Wind-Down Corp., the Official Committee of Unsecured Creditors and the MDL PEC Co-Leads on October 18, 2024. The company said the PSA does not constitute an admission of liability or wrongdoing.

2. 02

   Carrier said it will enter into 1 settlement agreements under the PSA to resolve estate claims arising from KFI's AFFF manufacturing and sales, and 2 settlement agreements to resolve current and future direct claims against public water systems and airports.

3. 03

   Carrier said it will pay $615 million in cash over 5 years as part of the Proposed Settlements, and will contribute 100% of the net sale proceeds from KFI's asset sale (estimated at $115 million) and its rights to recover insurance proceeds. The company said it will be entitled to receive up to $2.4 billion in insurance proceeds, and will contribute the first $125 million of those proceeds as additional consideration in the Direct Claims Settlements. It said it expects insurance payments it receives to cover, in the aggregate, the full amount it pays under the Proposed Settlements.

4. 04

   The company said each of the Proposed Settlements is subject to the execution of final documentation. It said the Estate Claims Settlement requires Bankruptcy Court approval and the Direct Claims Settlements require MDL Court approval. The company said it may terminate the Direct Claims Settlements if the number of eligible class members opting out exceeds specified levels.

Analysis scope · Filing bodyWe analyzed the filing body and confirmed exhibits. This is not a review of other exhibits, investor presentations or the full earnings call.

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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