Oil-and-gas company Hess and its bankrupt subsidiary Honx have agreed to pay up to $187 million under a deal to resolve the current and future asbestos claims asserted by the former contractors and employees of an oil refinery in the U.S. Virgin Islands, according to a settlement document filed with the court Thursday, WSJ Pro Bankruptcy reported. Hess placed Honx, previously known as Hess Oil New York, under chapter 11 bankruptcy in April of last year to drive a settlement of hundreds of personal-injury lawsuits stemming from alleged exposure to asbestos, silica and other toxic substances at the St. Croix oil refinery. The facility was known from its 1966 opening through 1998 as Hovic, when it was owned solely by Hess, and later as Hovensa and then Limetree Bay, according to court papers. The chapter 11 proceedings in the U.S. Bankruptcy Court in Houston have dragged out as Honx has said that Hess agreed to fund any asbestos claims by maintaining a $10 million reserve, an amount criticized by asbestos claimants as “woefully insufficient.” But monthslong negotiations recently led to a deal under which Honx and Hess agreed to pay $105 million to resolve roughly 910 current asbestos claims. In addition, the companies agreed to pay $45 million for future claims, along with up to $37 million in the following 25 years to fund additional claims as they arise, according to the settlement term sheet filed with the court.
