Nov 28 2005
James Hardie Industries NV today said that negotiators for JHINV had reached substantial agreement with the New South Wales Government on the Principal Deed and related agreements for the provision of long term funding to meet expected future compensation claims of Australians affected by asbestos related injuries as a result of exposure in Australia to products made by former James Hardie Group subsidiaries.
Negotiations between James Hardie and the NSW Government on the Principal Deed have proceeded basically in line with the terms of the Heads of Agreement signed on 21 December 2004 by the ACTU, NSW Government, Unions NSW, asbestos support groups and James Hardie. While agreement is still to be reached on the final wording of certain provisions of the Principal Deed and related matters, it is not expected that these are likely to prove to be impediments to final agreement being reached on all issues.
The agreement reached between the NSW Government and James Hardie’s negotiators still requires endorsement by the James Hardie Board. The Board has, however, been involved in settling the terms and conditions of the Principal Deed during this year, and has provided James Hardie’s negotiators with detailed parameters and guidance for the negotiations. According to the terms agreed with the NSW Government, the implementation of the Principal Deed will in the first instance be subject to a number of conditions precedent, including approval by James Hardie’s shareholders and lenders and receipt of satisfactory tax rulings/treatment. James Hardie is presently undertaking appropriate governance and due diligence processes in anticipation of final consideration of the asbestos compensation funding proposal by the James Hardie Board by Thursday morning of this week.
Details of the final agreement reached with the NSW Government should be released shortly thereafter.