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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): September 19, 1997
TERRA INDUSTRIES INC.
(Exact name of registant 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 executive offices) (Zip Code)
Registrant's telephone number, including area code: (712)277-1340
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ITEM 5. Other Events.
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On September 19, 1997, Terra Industries Inc. ("Terra") reached a settlement
with four 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. Zurich Insurance Co., National Union Insurance Co., Commonwealth
Insurance Co. and Fireman's Fund Insurance Co. have agreed to pay Terra their
proportionate share (32 percent of the overall insurance coverage) of a total
claim fixed at $321 million for purposes of this settlement only.
To date, Terra has received approximately $208 million in insurance
proceeds from all six carriers. With this settlement Terra will receive an
additional $37 million from the four settling carriers. Legal proceedings
continue against the two remaining insurers, CIGNA and Industrial Risk Insurers
(who together represent 68 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: September 23, 1997
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