LYNDHURST – American Home Assurance Company will fund a $148.8 million cleanup of former Meadowlands landfills, a major breakthrough for an important project that will greatly improve the environment and quality of life in the Meadowlands, the New Jersey Meadowlands Commission announced today.
“This settlement and AHA’s decision to take responsibility for the landfill remediation is a huge victory for residents of the Meadowlands and the environment,” said Joseph Doria, Chairman of the NJMC and Commissioner of the State Department of Community Affairs. “I am pleased that AHA recognizes the importance of this vital project and that the cleanup can now move forward.”
AHA, a subsidiary of American International Group, is paying for the cleanup under the terms of a performance bond it sold to the landfill remediation project’s developer, EnCap, in May 2004. Under the terms of the bond, AHA promised to complete, or pay the cost of, the remaining work should EnCap default. EnCap declared bankruptcy in May 2008. Its bankruptcy filing was dismissed in federal court in February.
"We are pleased that American Home Assurance Company, a subsidiary of AIG, has made a binding commitment to honor the performance bond it issued,” said New Jersey Attorney General Anne Milgram. “This will allow this long-delayed project to move ahead."
The NJMC had sued AHA in federal and state court to compel the company to honor its policy with EnCap. The Commission expressed satisfaction that AHA has stepped up to ensure that the landfill work is completed.
“I am pleased that AHA and the State have reached a settlement to this long standing dispute,” said Robert Ceberio, Executive Director of the NJMC. “The company’s decision to fund the $148.8 million will at last allow work to restart on this critical landfill remediation project.”
“This settlement and AHA’s decision to take responsibility for the landfill remediation is a huge victory for residents of the Meadowlands and the environment,” said Joseph Doria, Chairman of the NJMC and Commissioner of the State Department of Community Affairs. “I am pleased that AHA recognizes the importance of this vital project and that the cleanup can now move forward.”
AHA, a subsidiary of American International Group, is paying for the cleanup under the terms of a performance bond it sold to the landfill remediation project’s developer, EnCap, in May 2004. Under the terms of the bond, AHA promised to complete, or pay the cost of, the remaining work should EnCap default. EnCap declared bankruptcy in May 2008. Its bankruptcy filing was dismissed in federal court in February.
"We are pleased that American Home Assurance Company, a subsidiary of AIG, has made a binding commitment to honor the performance bond it issued,” said New Jersey Attorney General Anne Milgram. “This will allow this long-delayed project to move ahead."
The NJMC had sued AHA in federal and state court to compel the company to honor its policy with EnCap. The Commission expressed satisfaction that AHA has stepped up to ensure that the landfill work is completed.
“I am pleased that AHA and the State have reached a settlement to this long standing dispute,” said Robert Ceberio, Executive Director of the NJMC. “The company’s decision to fund the $148.8 million will at last allow work to restart on this critical landfill remediation project.”
