Livium settles four battery fire claims for $1.8M
- Livium reached settlements for four legal claims linked to a 2019 fire at its Envirostream subsidiary.
- The insurer will cover the entire $1.8 million settlement payout with zero cash outflow required from Livium.
- Further court-ordered mediation is scheduled in the coming weeks to resolve the final two remaining claims.
Livium (ASX:LIT) has resolved four legal claims stemming from a 2019 battery facility fire via an aggregate insurer-funded settlement of $1.8 million.
The legal resolution addresses liabilities that previously forced the business to book a massive A$5.4 million provision on its balance sheet for the financial year ended June 30.
"The claims are indemnified by Envirostream’s insurer, with no settlement cash outflow by Livium," said Livium Managing Director and CEO Simon Linge.
The company stated that it cannot yet determine the total financial impact on its existing provision as mediation continues for two remaining claims over the coming weeks.
Management announced it will keep the market updated as the final court proceedings advance towards an ultimate resolution.
Following the announcement, the Livium share price was unchanged at $0.0070.
Livium operates as Australia's primary battery recycler through its wholly owned subsidiary Envirostream to recover valuable metals from spent energy storage units.
