The Woodlands, Texas -- Huntsman Corp. said 17 May that its reinsurance carriers will pay $110 million in cash to settle Huntsman's claims for losses as a result of a fire on 29 April 2006 at its Port Arthur, Texas, olefins facility. This unit was subsequently sold to Flint Hills Resources, Huntsman said.
Huntsman said it will use the cash, expected to be paid within 30 days, to reduce its debt.
The group previously collected $365 million in insurance related to the 2006 fire.
"As previously indicated, we plan to use these proceeds to retire secured debt and further strengthen our balance sheet. After doing so with these proceeds, we will have prepaid almost $300 million of secured debt since the beginning of this year," commented Peter Huntsman, president and ceo, in the company statement.