Aug 8 Anadarko Petroleum Corp said on Wednesday that it still expects to win a case brought by paint materials company Tronox Inc but a settlement of the $25 billion lawsuit is less likely.
"Due to the change in the Company's opinion as to the probable form of resolution, Anadarko is no longer setting aside $525 million to settle the case," the company said in a filing with the U.S. Securities and Exchange Commission.
While the company does not expect to lose at trial, Anadarko estimated a potential loss of $1.4 billion, the filing said.
Tronox has claimed that when it was spun off in 2005 by Kerr-McGee Corp, which Anadarko later bought, it had been saddled with liabilities that led to its January 2009 bankruptcy filing. Tronox emerged from Chapter 11 protection in February 2011.
With the support of the U.S. Environmental Protection Agency, Tronox also claims that Anadarko should pay for environmental cleanup at more than 2,000 polluted U.S. sites.
The trial in U.S. Bankruptcy Court in Manhattan began in May. The case is In re: Tronox Inc, U.S. Bankruptcy Court, Southern District of New York, No. 09-10156.