The complex fraud case involving titanium dioxide (TiO2) producer, Tronox Inc., Kerr-McGee Corp. and Anadarko Petroleum Inc. is set to rumble on after the US government entered the fray, backing Tronox.
Bankrupt Tronox is suing its former owner Kerr-McGee for claiming it was left to battle historical environmental court cases bereft of cash-generating assets, ultimately forcing the company into Chapter 11 bankrupcy.
The crux of the issue began three years ago when Tronox was spun off from Kerr-McGee, following which Kerr-Mcgee was purchased by Anadarko Petroleum Corp. Tronox and Kerr-McGee agreed on a Masters Separation Agreement involving a $100m. pot to fund historical environmental cases accrued over Kerr-McGee's 70 year history. To date Tronox has only touched $6m. of this.
Anadarko has reacted by telling IM that it will “vigorously defend all of the claims” by the US Federal Government, which it feels are...