Benzinga | Sep 17, 2020 04:15PM EDT

Fuel Tech Wins $2.6M Insurance Reimbursement

Fuel Tech, Inc. (NASDAQ:FTEK), a technology company providing advanced engineering solutions for the optimization of combustion systems, emissions control and water treatment in utility and industrial applications, today announced it has agreed upon the terms of settlement with its insurance carrier whereby the Company will receive $2.6 million in proceeds related to an outstanding claim that was previously reported in 2019. The proceeds are expected to be received early in the 2020 fourth quarter.

As previously announced, in the fourth quarter of 2019 Fuel Tech reported a $2.0 million charge related to an equipment warranty liability issue with a U.S. customer, and in the second quarter of 2020, the Company recorded an incremental net charge of $600,000 related to the claim. The full amount of the insurance recovery is expected to be recorded in Fuel Tech's financial statements in the second half of 2020.