Huntsman has entered into an agreement with its reinsurance carriers to settle Huntsman's claims related to losses occurring as a result of the April 29, 2006, fire at its Port Arthur, Texas, olefins facility, subsequently sold to Flint Hills Resources.

Under the agreement, Huntsman will receive cash proceeds of $110m in settlement of its claims, which had been the subject of ongoing arbitration with its carriers.

According to Huntsman, it expects to receive payment within thirty days following the date of the agreement. It previously collected $365m in insurance proceeds also related to the 2006 fire.

Peter Huntsman, president and CEO of Huntsman, said: “We are pleased to have reached this agreement. As previously indicated, we plan to use these proceeds to retire secured debt and further strengthen our balance sheet. After doing so with these proceeds, we will have prepaid almost $300m of secured debt since the beginning of this year.”

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.