Global Settlement Ends All Pending Litigation
LEXINGTON, Mass., Nov. 8 /PRNewswire/ -- Raytheon Company (NYSE: RTN)
announced today that it has reached an agreement in principle that will end
all pending litigation between Raytheon and Washington Group International
Inc. (WGI). Under terms of the proposed settlement and release agreements,
the purchase price adjustment process, the matters in arbitration, and the
fraudulent transfer lawsuit filed by WGI would all be dismissed and neither
party would pay any amounts to the other in settlement of outstanding claims.
"With this dispute behind us, Raytheon can now focus its energy and
attention on its core businesses," said Neal Minahan, senior vice president
and general counsel of Raytheon. "It has been our position all along that a
reorganization plan that was fair and that met the legitimate concerns of all
of WGI's creditors would be supported by Raytheon. The proposed agreement
we've reached is consistent with those goals."
As part of the proposed settlement arrangements, Raytheon would drop its
claims that had been pending against WGI's bankruptcy estate. Raytheon also
would have some protections against future defaults by WGI, including a right
to be reimbursed for any costs incurred by Raytheon for guaranteed projects
assumed by WGI as part of its plan of reorganization.
With headquarters in Lexington, Mass., Raytheon Company is a global
technology leader in defense, government and commercial electronics, and
business and special mission aircraft.
Forward-looking statements
Certain statements made in this release contain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995
regarding the company's future plans, objectives, and expected performance.
Specifically, statements that are not historical facts, including statements
accompanied by words such as "believe," "expect," "estimate," "intend," or
"plan" are intended to identify forward-looking statements and convey the
uncertainty of future events or outcomes. The company cautions readers that
any such forward-looking statements are based on assumptions that the company
believes are reasonable, but are subject to a wide range of risks, and actual
results may differ materially. Important factors that could cause actual
results to differ include, but are not limited to: the proposed agreement
between Washington Group International Inc. (WGI) and its creditors is not
finalized; WGI's reorganization plan is not approved by the bankruptcy court;
or WGI fails to perform any of the assumed projects that are still subject to
Raytheon support obligations. Further information regarding the factors that
could cause actual results to differ materially from projected results can be
found in the company's filings with the Securities and Exchange Commission,
including "Item 1-Business" in the company's Annual Report on Form 10-K for
the year ended December 31, 2000.
Contact:
David Polk
781.860.2386
SOURCE Raytheon Company
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Related links:
http://www.raytheon.com
CONTACT:
David Polk of Raytheon Company,
+1-781-860-2386
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