−Removed: LEGAL PROCEEDINGS
−Removed: During the year ended January 31, 2020, the Company discovered a credit card theft of approximately $2.6 (which is included in cost of sales for the year ended January 31, 2020) and promptly reported the theft to its insurers and law enforcement.
−Removed: The Company also filed suit against several third parties to recover damages related to the theft.
−Removed: During the year ended January 31, 2021, the Company received an insurance reimbursement of $2.5 million from insurance providers (which is included in cost of sales for the year ended January 31, 2021).
−Removed: The Company implemented additional expenditure controls to reduce the likelihood of
−Removed: similar thefts in the future, such as daily limits on all fuel cards and additional credit card activity reviews by management.
+Added: LEGAL PROCEEDINGS (U.S.
+Added: dollars in millions)
The Company is at times either a plaintiff or a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate are likely to result in a material adverse effect on the Company’s consolidated financial statements, except as noted herein.
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("Magellan"), Redmon-Keys Insurance Group, Inc.
−Removed: ("Redmon") and Certain Underwriters at Lloyd's ("Underwriters") to recover $4.6 million owed on invoices duly issued by the Company for services rendered on behalf of defendants in response to an offshore well blowout near Bob Hall Pier in Corpus Christi, Texas.
−Removed: Magellan did not dispute the invoices or the charges therein but alleged an inability to pay prior to obtaining funding from Underwriters under Magellan's Owner's Extra Expense ("OEE") policy.
−Removed: An OEE policy is an industry norm to provide insurance coverage in the event of a blowout.
−Removed: Magellan's OEE policy has a limit of $20 million.
−Removed: We believe that total invoices issued to Magellan by its blowout vendors total $14.3 million and are within policy limits.
−Removed: The Company's Texas court action includes claims against Magellan and as an additional insured under the OEE policy and also against Redmon-Keys as Magellan's broker who issued the additional insured certificate to the Company.
−Removed: On March 19, 2021, Underwriters filed a declaratory judgment action in the United States District Court for the Southern District of Texas seeking a declaration that approximately $7.4 million of the total $14.3 million in blowout related expenses fall outside of policy coverage referencing a date on which they believe coverage ceased to apply.
−Removed: The Company disputes Underwriters allegations on coverage and will likely litigate the issue in one or more court actions.
−Removed: Nonetheless, we note here that approximately $2.3 million or half of the Company's total $4.6 million in invoice to Magellan relate to services rendered and materials provided prior to the coverage dispute date alleged by Underwriters.
−Removed: In its declaratory judgment action, Underwriters further alleged that it had made some payments to Magellan.
−Removed: As Magellan had not made onward payments to the Company, the Company filed a request for a Temporary Restraining Order ("TRO") against Magellan in its Texas state court lawsuit.
−Removed: On March 30, 2021, hours before the TRO hearing, Magellan filed for bankruptcy pursuant to Chapter 7 of the U.S.
+Added: and certain underwriters at Lloyd's to recover $4.6 owed on invoices duly issued by the Company for services rendered on behalf of the defendants in response to an offshore well blowout near Bob Hall Pier in Corpus Christi, Texas.
+Added: On March 30, 2021, Magellan filed for bankruptcy pursuant to Chapter 7 of the U.S.
bankruptcy code.
−Removed: The Company believes that the OEE policy is now an asset of the Chapter 7 estate.
−Removed: The bankruptcy proceedings are in their initial stages.
−Removed: At this time, the Company has reserved the full amount of its invoices totaling $4.6 million as a prudent action in light of the Chapter 7 filing.
−Removed: However, we believe that the proceeds from the OEE policy will ultimately be allocated to the blowout creditors and will be offering our support to the U.S.
−Removed: Trustee in its pursuit of full recovery under the OEE policy from Underwriters.
+Added: The bankruptcy proceedings are ongoing.
+Added: During the fiscal year ended January 31, 2021, the Company reserved the full amount of its invoices totaling $4.6 as a prudent action in light of the Chapter 7 filing.
“Commitments, Contingencies and Off-Balance Sheet Arrangements” to our audited consolidated financial statements included elsewhere in this Form 10-K.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.