CONCORD, Mass., Dec. 1 /PRNewswire/ -- Starmet Corporation (Nasdaq: STMT),
a Concord, Massachusetts based manufacturer of specialized metal products,
today announced that on November 22, 2000, the Company received a denial of
its amended P.L. 85-804 claim to the U.S. Army requesting payment of all past
and future costs of approximately $18 million related to the remediation of
the Company's Concord, Massachusetts holding basin. The Army decision
indicated in part that "Other avenues exist to fairly adjudicate a
comprehensive solution of Starmet's environmental problems at its Concord
facility". This amended claim to the Army had also sought costs which are
associated with litigation filed by Zhagrus Environmental, Inc. and arising
out of Zhagrus' contract for disposal of materials in the former holding basin
at Starmet's property (which had been licensed to store waste materials from
the production of Army-related products). This litigation is more fully
described in Starmet's 10-Q filing of July 2, 2000.
Starmet continues to take aggressive steps to resolve the Zhagrus
litigation and ensure that the Army fulfills all of its obligations as a
responsible party with respect to site clean up. Should Zhagrus now execute
on their $4.4 million partial summary judgement, the Company's business,
financial condition and results of operations would be materially and
adversely affected, and the Company would be forced to consider insolvency or
similar reorganization proceedings to preserve the Company's business
operations.
Special Note Regarding Forward-looking Statements:
Statements contained herein that are not statements of historical fact are
"forward-looking statements." Forward-looking statements include statements
concerning expectations of management with respect to results of litigation
and future operations.
Such forward-looking statements are based on a number of assumptions and
involve a number of risks and uncertainties, and, accordingly, actual results
could differ materially from those projected in the forward-looking
statements. Factors that may cause such differences include, but are not
limited to: the effects of federal, state and local government regulation;
economic conditions, results of litigation and other risks identified in the
Company's filings with the Securities and Exchange Commission.
For further information, please contact:
Gary Mattheson
Chief Financial Officer
978-369-5410
Company News on Call: http://www.prnewswire.com or fax,
800-758-5804, ext. 632850
SOURCE Starmet Corporation
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Related links:
http://www.starmet.com
Company News On-Call:
http://www.prnewswire.com/comp/632850.html or fax,
800-758-5804, ext. 632850
CONTACT:
Gary Mattheson, Chief Financial Officer of
Starmet Corporation
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