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Subsequent Events
3 Months Ended
Mar. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events

NOTE 16. Subsequent Events

We perform review procedures for subsequent events, and determine any necessary disclosures that arise from such evaluation, up to the date of issuance of our annual and interim reports.

On April 9, 2007, we issued a warrant to a lender to purchase 1,390,944 shares of our Class A Common Stock, at $6.05 per share, which is equivalent to 7% of our fully diluted common stock (including both Class A and Class B shares). This warrant expired on April 9, 2012 without the purchase or issuance of additional shares.

Effective April 20, 2012, the parties to the lawsuit described in Note 14, “Commitments and Contingencies”, under the caption “Platinum” reached an agreement settling that lawsuit. Plaintiff has agreed to dismiss the lawsuit with prejudice and release each of the Defendants in exchange for payment of $13.5 million. Tecumseh will not be responsible to pay any portion of the settlement. The settlement is being funded by Tecumseh’s and Bonsall’s D&O insurance carriers under a reservation of rights and by the defendants other than Tecumseh. Pursuant to the settlement agreement, Tecumseh will continue to be responsible under the Stock Purchase Agreement for certain third-party indemnity obligations which predate the sale of Tecumseh Power Company, including the horsepower labeling lawsuits. Separately, the Defendants have agreed to mutual releases in exchange for the payment to Tecumseh of $1.75 million.

On April 25, 2012, the Company informed employees and current retirees of the terminations (1) effective May 1, 2012 of the Plan providing life insurance benefits to eligible current and future salaried retirees of the Company in its entirety, (2) effective December 31, 2013 of the Plan providing pre-age 65 retiree group health care benefits to current salaried employees and current salaried retirees of the Company who could participate or who are currently participating in the Plan and (3)effective May 1, 2012 of the Plan providing pre-age 65 retiree group health care benefits to all current employees who have not satisfied (as of May 1, 2012) the age and Company service requirements to otherwise qualify upon retirement for eligibility for and participation in the Plan. We are assessing the impact of this change on the Consolidated Statements of Operations, which will be recorded in the second quarter. The current accrual balances in our OPEB liabilities and the related balance in Accumulated other comprehensive income as of March 31, 2012 are approximately $5.3 million and $65.8 million, respectively.