Oct 21 (Reuters) - Carrier Global ( CARR ) has reached a $730

million settlement with its fire protection unit Kidde-Fenwal

and claimants that have sued the bankrupt subsidiary over toxic

"forever chemicals" in its firefighting foam products.

Kidde-Fenwal said in a Friday court filing in Delaware that

it would use the settlement to create a Chapter 11 plan that

would pay its creditors, including local governments, companies

and individuals who have claimed that firefighting foam products

it sold contaminated drinking water and soil with perfluoroalkyl

and polyfluoroalkyl substances, known as PFAS or "forever

chemicals," near airports and military bases around the U.S.

The settlement has the support of a committee representing

Kidde-Fenwal's junior creditors and the lead plaintiffs in the

PFAS lawsuits.

The company has agreed to pay $540 million to Kidde-Fenwal

and $190 million to the PFAS plaintiffs.

Carrier said in a Friday filing with the U.S. Securities and

Exchange Commission that it will fund the settlements with $615

million in cash paid over five years, plus $115 million that was

raised from the sale of Kidde-Fenwal's assets to private equity

firm Pacific Avenue Capital Partners, which was approved in

April.

Carrier said it is entitled to up to $2.4 billion in

insurance payouts for the PFAS claims, enough to cover its costs

for the settlement. Carrier also agreed to contribute additional

insurance rights to Kidde-Fenwal, which may make more funding

available for the water pollution settlements.

Kidde-Fenwal filed for bankruptcy in May 2023, after being

named as a defendant in more than 4,400 PFAS lawsuits that have

been centralized in federal court in South Carolina.

The lawsuits were filed by local governments, companies and

individuals who alleged that a chemical firefighting foam

products that the company sold from 2007 to 2013 used at

airports and military bases had caused extensive contamination

of drinking water and soil.

Water providers in the U.S. have reached a $10.3 billion

settlement with 3M ( MMM ) and a $1.19 billion settlement with DuPont,

Chemours and Corteva ( CTVA ), resolving their claims that those

companies contaminated drinking water with PFAS.

The case is Kidde-Fenwal Inc, U.S. Bankruptcy Court for the

District of Delaware, No. 23-10638.

For Kidde-Fenwal: Brian Glueckstein and Justin DeCamp of

Sullivan & Cromwell

For the creditors' committee: David Molton of Brown Rudnick

Read more:

Fire protection company Kidde-Fenwal files for bankruptcy

citing PFAS lawsuits

3M's ( MMM ) $10.3 billion PFAS settlement gets preliminary approval

Litigation over 'forever chemicals' is growing: Is your

company the next defendant?