Eli Lilly (LLY) to Close its Mont St. Guibert Facility, Sees $100-110 Million in Restructuring Charges
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In Today's 8-K Filing From Eli Lilly (NYSE: LLY): On November 28, 2006, the board of directors approved a plan to close the Mont St. Guibert site and also approved a social package, including severance payments, that was negotiated with the site works council.
Under the agreement, operations will decrease during the rest of 2006 and into the first half of 2007, with the official closing anticipated for June 30, 2007. Restructuring charges of approximately $100-110 million related to closing the Mont St. Guibert facility will occur primarily in the fourth quarter of 2006, composed of $90-95 million in severance related charges and lease termination costs, substantially all of which is expected to be in cash, and $10-15 million in non-cash asset impairment charges.
Under the agreement, operations will decrease during the rest of 2006 and into the first half of 2007, with the official closing anticipated for June 30, 2007. Restructuring charges of approximately $100-110 million related to closing the Mont St. Guibert facility will occur primarily in the fourth quarter of 2006, composed of $90-95 million in severance related charges and lease termination costs, substantially all of which is expected to be in cash, and $10-15 million in non-cash asset impairment charges.
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