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International Paper issues update on mill explosion
International Paper says it is too early to determine losses from mill explosion

NEW YORK (Associated Press) - International Paper Co. said Tuesday in a regulatory filing that it is too early to determine its losses not covered by insurance from a fatal boiler explosion at the company's Vicksburg, Miss., facility.

The boiler exploded on Saturday, resulting in one death and injuries to 17 contractors working on site.

In a Securities and Exchange Commission filing, International Paper said it has business interruption insurance and property damage insurance, which are subject to deductibles and retention amounts up to $20 million. The company's primary insurance provider is Factory Mutual Global.

International Paper said the mill's production represents about 10.5 percent of its linerboard capacity and 1.5 percent of its North America capacity. International Paper said the loss of capacity will tighten its supply/demand balance, but the company will try to meet customers' needs on a case by case basis.

The company said it is also too early to predict an estimated startup date and how the interruption will affect mill employees.

The mill, which was undergoing annual maintenance, was in the process of starting back up when the incident occurred.

As previously disclosed, officials from the federal Occupational Safety and Health Administration are investigating.

International Paper shares rose 66 cents to $26.35 in afternoon trading, after hitting a 52-week low of $25.35 early in the session. The stock has dropped from a high of $41.57 last July. Top of page

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