MIAMI--(BUSINESS WIRE)--Jun. 8, 2015--
World Fuel Services Corporation (NYSE: INT) today announced that it has
entered into a settlement agreement with the Trustee for the U.S.
bankruptcy estate of Montreal, Maine & Atlantic Railway Ltd. (the
“Trustee”), Montreal, Maine and Atlantic Canada Co. (“MMAC”), and the
monitor in MMAC’s Canadian bankruptcy to resolve claims arising out of
the July 2013 train derailment in Lac-Mégantic, Quebec.
Under the terms of the settlement agreement, which is subject to
approval by the creditors and courts involved in the U.S. and Canadian
bankruptcies, the company will contribute US$110 million to a
compensation fund established to compensate parties who suffered losses
as a result of the derailment. The company expects that the full
settlement amount will be covered by insurance. As part of the
settlement, the company will also assign to the Trustee and MMAC certain
claims it has against third parties arising out of the derailment.
In consideration of the settlement amount and the assignment of claims,
the company and its affiliates, as well as the company’s former joint
ventures, DPTS Marketing, LLC and Dakota Petroleum Transport Solutions,
LLC and each of their affiliates (the “WFS Parties”), will receive the
benefit of the global releases and injunctions barring claims against
the WFS Parties set forth in the respective bankruptcy plans filed by
the Trustee in the U.S. and by MMAC in Canada. The Province of Quebec
and other key creditors in the bankruptcies have consented to the
settlement.
“We believe that participating in the settlement and contributing to the
compensation fund is in the best interests of our shareholders and will
also aid in providing closure to those affected by this tragic
accident,” said Michael J. Kasbar, chairman and chief executive officer.
“The entire community of Lac-Mégantic remains in our thoughts and
prayers as they continue to recover from this tragedy.”
Additional information regarding the settlement can be found in the
company’s current report on Form 8-K filed with the Securities and
Exchange Commission at: www.sec.gov.
Information Relating to Forward-Looking Statements
This release includes forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding the settlement agreement and nature of
the settlement, and our expected insurance recovery. These
forward-looking statements are qualified in their entirety by cautionary
statements and risk factor disclosures contained in the company’s
Securities and Exchange Commission (“SEC”) filings, including the
company’s Annual Report on Form 10-K filed with the SEC on February 12,
2015. Actual results may differ materially from any forward-looking
statements due to risks and uncertainties, including, but not limited
to: whether the bankruptcy plans, including our settlement agreement,
are approved by the creditors and receive final approval from the courts
involved in the U.S. and Canadian bankruptcies, our ability to recover
from our insurance carriers, any unforeseen litigation and other costs
related to the incident that may arise in the future, as well as the
other risks detailed from time to time in the company’s SEC filings. New
risks emerge from time to time and it is not possible for management to
predict all such risk factors or to assess the impact of such risks on
our business. Accordingly, we undertake no obligation to publicly update
or revise any forward-looking statements, whether as a result of new
information, changes in expectations, future events, or otherwise.
About World Fuel Services Corporation
Headquartered in Miami, Florida, World Fuel Services is a global fuel
logistics, transaction management and payment processing company,
principally engaged in the distribution of fuel and related products and
services in the aviation, marine and land transportation industries.
World Fuel Services sells fuel and delivers services to its clients at
more than 8,000 locations in more than 200 countries and territories
worldwide.
The company's global team of market makers provides deep domain
expertise in all aspects of aviation, marine and land fuel management.
Aviation customers include commercial airlines, cargo carriers, private
aircraft and fixed base operators (FBOs), as well as the United States
and foreign governments. World Fuel Services' marine customers include
international container and tanker fleets, cruise lines and time-charter
operators, as well as the United States and foreign governments. Land
customers include petroleum distributors, retail petroleum operators,
and industrial, commercial, residential and government accounts. The
company also offers transaction management services which consist of
card payment solutions and merchant processing services to customers in
the aviation, marine and land transportation industries. For more
information, call 305-428-8000 or visit www.wfscorp.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150608006522/en/
Source: World Fuel Services Corporation
World Fuel Services Corporation
Ira M. Birns, 305-428-8000
Executive
Vice President & Chief Financial Officer
