Dole to Receive Insurance Settlement of $51 Million

Dole Food Company Inc. in Westlake Village said it will receive a $51-million settlement of the majority of its remaining insurance claims for damages suffered from Hurricane Mitch in 1998.

The company’s receipt of the money in the third quarter will result in a gain of about 70 cents a share for the quarter.

In addition, Dole announced it had successfully completed the redemption of its $225 million in notes that matured July 15. The company also recently entered into a $250-million, 364-day bank credit agreement with Bank of America to provide Dole with additional short-term liquidity.

The company anticipates the money drawn from this credit agreement will be repaid from insurance recoveries, funds from selling non-core assets and businesses and ongoing cash flow from operations.

“Hurricane Mitch was a severe disaster that affected not only Dole and its stakeholders but the entire country of Honduras and, to a lesser extent, the countries of Guatemala and Nicaragua,” said David H. Murdock, Dole chairman and chief executive.

Dole, with 1999 revenue of $5.1 billion, is the world’s largest producer and marketer of fresh fruit, vegetables and flowers. It also markets a growing line of packaged foods.