Maxim settles claim with third party, to receive $6.5M

Executive Summary

• Maxim Power Corp. has reached a partial settlement with one of the third parties involved in a claim regarding a non-injury fire at the Milner 2 plant on September 30, 2022.
• The company expects to receive approximately $6.5 million in net proceeds from this settlement, representing the maximum available from the specific third party's insurance policy.
• Maxim continues to pursue claims against remaining third parties, noting that the collective insurance coverage for those parties is equivalent to the amount already settled, though precise amounts and timing for further compensation remain undetermined.

Key Details

• Settlement Amount: Approximately $6.5 million in net proceeds (after fees).
• Source of Funds: Insurance policy of one of the third parties against whom the claim was filed.
• Incident Context: The claim relates to a non-injury fire on September 30, 2022, which caused damage to the Milner 2 air inlet filter house.
• Timing of Receipt: Maxim anticipates receiving the settlement proceeds in the fourth quarter of 2025.
• Remaining Claims: The corporation continues to pursue claims against remaining third parties.
• Potential Future Recovery: The collective amount of insurance policies for the remaining third parties is understood to be equivalent to the $6.5 million already settled.
• Uncertainty: The precise amount and timing of any further compensation from remaining parties cannot be determined as of the date of the release.

Notable Quotes

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