- Tronox (TROX) +8.6% premarket following last night's court ruling that Anadarko Petroleum and its Kerr-McGee unit acted with intent to delay and hinder TROX's creditors at the time of the spinoff.
- The court found APC liable and indicated a damage award of as much as $14.5B - the value is still to be determined - but TROX will receive no immediate or direct benefit from the ruling; instead, 88% of the judgment will go to trusts and other governmental entities to remediate polluted sites.
- TROX expects to receive tax deductions equal to the amount spent by the trusts, which will accrue over the life of the trusts as the funds received by the judgment are spent; the expenditures and accompanying tax deductions may continue for decades, potentially amounting to hundreds of millions of dollars annually.
Tronox expects to receive millions in tax deductions via court ruling, +8.6%
Dec 13 2013, 08:22 ET