7th Mar 2016 11:49
LONDON (Alliance News) - Coats Group PLC Monday said it expects a USD7 million exceptional charge in 2016 in relation to a decision from the US Environmental Protection Agency in regards to the Lower Passaic River in New Jersey.
Last Friday the US EPA announced a decision on the remediation of the lower eight miles of the river, as part of a plan to remove large amounts of toxic mud from the river, with a remedy of around USD1.73 billion. The costs of this are to be shared among hundreds of potentially responsible parties.
Coats believes that its share of the remedial costs is minimal, and others will have a much more significant share of the remedial costs. It believes that the loss attributable to shareholders will increase by around USD4.0 million compared to the USD6.0 million provision included in its 2015 results.
Coats said negotiations amongst the parties involved and the EPA are expected to take more than 10 years, and additional revisions may be appropriate "depending on future developments."
Shares in Coats Group were up 0.7% at 28.94 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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