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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 12, 1997
TERRA INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
MARYLAND 1-8520 52-1145429
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
TERRA CENTRE
600 FOURTH STREET
P.O. BOX 6000
SIOUX CITY, IOWA 51102-6000
(Address of principal (Zip Code)
executive offices)
Registrant's telephone number, including area code: (712) 277-1340
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ITEM 5. Other Events.
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On December 12, 1997, Terra Industries Inc. ("Terra") reached a settlement
with CIGNA Property and Casualty Company ("CIGNA"), one of the six insurance
carrier defendants whom Terra sued in April of this year to recover property
damages and business interruption losses sustained in connection with the 1994
explosion at Terra's Port Neal, Iowa fertilizer plant. CIGNA agreed to pay
Terra its proportionate share (18 percent of the overall insurance coverage) of
a total claim fixed at $321 million for purposes of settlement. Previously,
Terra settled with four of the other five insurance carrier defendants with each
defendant paying its share of a total claim fixed at $321 million.
To date, Terra has received approximately $246 million in insurance proceeds
from all six carriers. With this settlement Terra will receive an additional
$20.1 million from CIGNA. Legal proceedings continue against the remaining
insurer, Industrial Risk Insurers (who represents 50 percent of the insurance
coverage).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TERRA INDUSTRIES INC.
By: /s/ GEORGE H. VALENTINE
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George H. Valentine
Senior Vice President, General Counsel
and Corporate Secretary
Date: December 15, 1997
