Halliburton Company late Friday said a federal court had signed an order that would end the company's asbestos liability later this month, clearing another hurdle for two of its subsidiaries to emerge from bankruptcy. The Halliburton subsidiaries, Kellogg Brown & Root and DII Industries, filed bankruptcy in December 2003 to facilitate the $4.2 billion asbestos and silica settlement. That settlement was approved by a bankruptcy court in July.
The US District Court ruling, issued on Wednesday, would free Halliburton, an oil field services company formerly headed by Vice President Dick Cheney, of liability from asbestos lawsuits after a 30 day waiting period ending on December 31, the company said.
On Monday, a bankruptcy judge approved a settlement to end insurance disputes that will result in $1.5 billion in cash funding for a payout fund.
Halliburton said it expects to conclude the bankruptcies by year end and fund its settlement by the end of January.
Analysts said investors were anticipating a smooth exit from the asbestos liabilities, which have weighed on the company's share price for nearly four years.
"The asbestos exposure is virtually done. The stock certainly has been trading as if it were done," said Kevin Wood, analyst with Susquehanna Financial Group in New York.
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