Fresenius Medical Care AG & Co. KGaA

Legal Proceedings Report • Nov 29, 2002

News Details

Ad-hoc | 29 November 2002 07:30

Fresenius Medical Care english

Fresenius Medical Care achieved agreement in principle on Fraudulent Conveyance Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Agreement in principle with asbestos litigants achieved to settle the Fraudulent Conveyance and all other related issues; The Company will stay within the therefore accrued Q4 2001 reserve Fresenius Medical Care today announced that it has reached an agreement in principle for the settlement of all the fraudulent conveyance claims against it and other claims related to the Company that arise out of the bankruptcy of W.R. Grace & Co. Under the terms of the agreement in principle, fraudulent conveyance and other claims raised on behalf of asbestos claimants will be dismissed with prejudice and the Company will receive protection against all existing and potential future asbestos-related claims upon confirmation of the W.R. Grace & Co. bankruptcy reorganization plan. The Company will retain responsibility to resolve the outstanding pre-merger income taxes of the W.R. Grace & Co. consolidated tax group and has agreed to pay USD 15 million to the W.R. Grace bankruptcy estate upon plan confirmation. No admission of liability has been or will be made. The total tax and settlement payments pursuant to the terms of the agreement in principle are not expected to exceed the amount reserved for tax payments by the Company in the fourth quarter 2001. A definitive settlement agreement is expected before the end of the year 2002. The Company is clearly pleased to be able to reach agreement on financial terms that are well within the existing reserves for pre-merger liabilities and that provide for a prompt, full and final resolution of these matters. Although the Company remains confident that there was no fraudulent conveyance in the 1996 transaction, it was in the best interests of the Company and its shareholders to put any asbestos-related questions to rest permanently. This settlement avoids the costs of expensive and distracting litigation that could have taken years to resolve. Fresenius AG (WKN 578 560, 578 563) holds a majority interest in Fresenius Medical Care’s ordinary capital. Fresenius Medical Care AG Board of Management Bad Homburg v.d.H., November 29, 2002 end of ad-hoc-announcement (c)DGAP 29.11.2002 ——————————————————————————– WKN: 578 580; ISIN: DE0005785802; Index: DAX Listed: Amtlicher Markt in Frankfurt ; Freiverkehr in Düsseldorf, Berlin, München, Bremen, Hamburg, Hannover, Stuttgart 290730 Nov 02