Managing legacy liabilities is never easy. For some, it can be a nightmare. Thus, James Hardie and its asbestos compensation fund took yet another hit yesterday through the loss of a tax appeal. The loss is described here in mass media in Australia. The mass media is focused on the fund’s long term survival prospects in light of the adverse ruling and the continuing slumps in the building sector that buys product from James Hardie entities.
The company issued a statement yesterday (go here to investor relations page), but did not include a link to the opinion. According to the statement. the loss will result in a charge of about $ 330 million (US) unless there is a successful further appeal. The company also says it will not violate loan covenants by taking the charge.