공지사항

Asbestos Bankruptcy Trusts

Companies who file for bankruptcy typically create asbestos trusts for bankruptcy. These trusts cover personal injury claims of asbestos legal exposure victims. In the mid-1970s, at least 56 asbestos bankruptcy trusts were created.

Armstrong World Industries Asbestos Trust

It was established in 1860 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork maker. It employs more than 3000 workers and has 26 manufacturing plants all over the world.

The company employed Pericardial Asbestos (Acecard.Net) in a range of products including insulation, tiles vinyl flooring, and tiles during its beginning years. Workers were exposed to asbestos, which can lead to serious health issues like mesothelioma and lung cancer.

The asbestos-containing products manufactured by Armstrong were extensively used in residential, commercial and military construction industry. As a result of this exposure many thousands of Armstrong workers developed asbestos-related diseases.

Although asbestos is a mineral that occurs naturally however, it is not safe to be consumed by humans. It is also called a fireproofing substance. Companies have established trusts to pay compensation to victims of the dangers of asbestos legal.

A trust was created to pay the victims of Armstrong World Industries' bankruptcy. The trust has paid out more than 200,000 claims over the first two years. The total compensation amounted to more than $2 billion.

Armor TPG Holdings, which is a private equity firm is the trustee of the trust. At the beginning of 2013 the company owned more than 25 percent of the fund.

According to the Asbestos Victims Compensation Trust, the company is estimated to have been responsible for more that $1 billion in personal injury claims. The trust holds more than $2 billion in reserves for paying claims.

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. During the 1980s, Celotex Corporation was hit by a flood of lawsuits claiming asbestos-related damage. These claims, in addition to others included billions of dollars in damages.

Celotex filed for bankruptcy protection in 1990. To settle asbestos-related claims the Asbestos Settlement Trust was created through Celotex's reorganization program. The Trust filed an action in the United States District Court for the Middle District of Florida. The Trust was represented by attorneys from Saiber L.L.C.

In the process the trust sought to secure coverage under two extra general liability insurance policies. One policy provided coverage of five million dollars, while the other offered coverage for 6.6 million. The trust also asked for coverage from Jim Walter Corporation. But, it did not find evidence that the trust was required to provide information to insurers who are not covered.

The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31, 2004. The trust also filed a motion seeking to overturn the special master's ruling.

Celotex had less than $7 million of primary coverage at the time of filing, but believed that future asbestos litigation would impact its coverage for excess. Celotex was aware of the need for multiple layers of excess insurance coverage. The bankruptcy court could not find any evidence that Celotex provided reasonable notice to its insurers who were in excess.

The Celotex asbestos commercial Settlement Trust is a complex process. In addition to providing claims for asbestos-related illnesses, it also is responsible for making payments to Philip Carey (formerly Canadian Mine).

The process can be difficult. The trust provides a user-friendly claim management tool as well as an interactive website. The website also features an entire page dedicated to claims inaccuracies.

Christy Refractories Asbestos Trust

Originally, Christy Refractories' insurance pool was worth $45 million. The company filed for bankruptcy in 2010 however. The reason for the bankruptcy filing was to resolve asbestos lawsuits. Christy Refractories' insurers have been in the process of settling asbestos claims at a rate of $1 million per month since then.

There have been more than 20 billion dollars paid out from asbestos trust funds since the late 1980s. These funds are able to cover the cost of therapy and lost income. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust, and the M.H. Porter Asbestos Trust.

The Thorpe Company's products included insulation and refractory materials which included asbestos. In 2002, the company filed for Chapter 11 bankruptcy. However, it was reemerged in 2006. It handled more than 4,500 claims.

The Western MacArthur Trust paid out more than $1.1 billion in claims. The Synkoloid Company, Abex Corporation, and Pneumo Corporation all used asbestos in their products. The United States Gypsum Company used asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid out over 22,000 asbestos claims. It supplied sealing products to the oil extraction industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, massive tort actions, and a twenty year limitation on the distribution of funds.

The Western MacArthur Asbestos Settlement Trust has paid more than $500 million in claims. It also handles claims against Yarway.

The Thorpe Insulation Settlement Trust includes the Pacific Insulation Company as well as the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

Federal Mogul's Asbestos Personal Injury Trust was originally filed in 2007. It is a trust that helps those who have been exposed to asbestos. The Federal Mogul Asbestos PI Trust is a trust in bankruptcy that provides financial compensation to victims of illnesses that were caused by asbestos exposure.

The initial assets of $400 million were used to create the trust in Pennsylvania. Following its establishment it made payments of millions to people who were claiming.

The trust is now located in Southfield, MI. It is made up of three separate funds. Each one is dedicated to handling claims against asbestos-related entities of the Federal-Mogul group.

The primary objective of the trust is to provide financial compensation for asbestos-related diseases within the 2,000 occupations that use asbestos life expectancy. The trust has already paid more that $1 billion in claims.

The US Bankruptcy Court estimated the net value of asbestos liabilities to be in the range of $9 billion. It was also determined that creditors should maximize the value of assets.

The Asbestos PI Trust was created in 2007. Elihu Inselbuch was a partner at the firm Caplin & Drysdale and served as the Trust attorney.

To deal with claims, the trust has established Trust Distribution Procedures (or TDPs). These TDPs are designed to be fair to all claimants. They are based upon past precedents for nearly identical claims in the US tort system.

Reorganization helps asbestos companies protect themselves from mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled through the bankruptcy courts. Large corporations are using new strategies to access the judicial system. One of these methods is restructuring. This allows the business to continue to operate and offer relief to those who have not paid their creditors. Additionally, it could be possible for the company to be shielded from lawsuits brought by individuals.

For example it is possible for a trust fund to be set up to help asbestos victims as part of a restructuring. The funds could be paid out in the form of gifts, cash or a combination of both. The reorganization described above is an initial funding proposal and is followed by a reorganization plan approved by the court. When a reorganization is approved and a trustee is appointed. It could be an individual or a bank or an entity that is not a third party. The most effective reorganization will benefit everyone affected.

Aside from announcing a new strategy for bankruptcy courts, the restructuring reveals some powerful legal tools. It's not a surprise that many companies have filed for chapter 11 bankruptcy protection. To ensure that they are protected asbestos-related companies had no other choice other than to file chapter 7 bankruptcy. Georgia-Pacific LLC, for example had filed chapter 7 bankruptcy in 2009. The reason is simple. To protect itself from mesothelioma-related claims, Georgia-Pacific filed for view website a restructuring and rolled all its assets into one. It has been selling its most valuable assets in order to take control of its financial problems.

FACT Act

Currently, there is a bill in Congress that is referred to as the "Furthering Asbestos Claim Transparency Act" (FACT) which will alter the way asbestos trusts operate. The legislation will make it more difficult to claim fraudulent claims against asbestos trusts, and will give defendants full access to information in litigation.

The FACT Act requires that asbestos trusts publish a list of claimants in a public court docket. They are also required to provide names as well as exposure histories and the amount of compensation paid to these claimants. These reports, which can be viewed by anyone, would aid in preventing fraud.

The FACT Act would also require trusts to release other information, such as payment details even if they were part of confidential settlements. In fact, the report on the FACT act by the Environmental Working Group found that 19 members of the House Judiciary Committee who voted for the bill received campaign contributions from asbestos interests.

The FACT Act is a giveaway to asbestos-related companies with large profits. It could also hinder the process of compensation. Additionally, it could create significant privacy concerns for victims. The bill is also a complicated piece of legislation.

In addition to the information required to be released In addition to the information that must be published, the FACT Act also prohibits the release of social security numbers, medical records and other data protected by bankruptcy laws. It's also harder to obtain justice in courts.

Apart from the obvious question of how a victim's compensation could be affected, the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee's greatest accomplishments and found that 19 members were paid campaign contributions from corporations.