On January 12, 2009, Tronox filed for bankruptcy under Chapter 11, and in May 2009 Tronox filed an adversary proceeding against Anadarko Petroleum Corporation and several of its subsidiaries including Kerr-McGee Corporation. The United States filed a Complaint-in-Intervention in the adversary proceeding against Kerr-McGee alleging claims of fraudulent conveyance.
On February 14, 2011, a settlement in the Southern District of New York bankruptcy court between Tronox Inc. and its affiliated debtors and the United States, multiple states and municipalities, and the Navajo Nation became effective. Under that settlement, these government entities received $270 million and 88 percent of any proceeds from a fraudulent conveyance lawsuit against Anadarko Petroleum Corporation to settle environmental liabilities. The fraudulent conveyance lawsuit alleges that Anadarko Petroleum Corporation transferred valuable assets out of Tronox and significant environmental liabilities into Tronox. That lawsuit will be heard in the bankruptcy court.
After a trial, on April 3, 2014, a settlement was lodged in the fraudulent conveyance action in Bankruptcy Court which provides that $224 million will go into a special account for the Welsbach Superfund Site, $217 million will go into the Superfund for reimbursement of past costs at the Federal Creosote Superfund Site, and an as-to-be-determined portion of the $43 million in outstanding past costs for GCL Tie and Treating Superfund Site wil