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Asbestos Bankruptcy Trusts

Companies that file for bankruptcy generally create asbestos trusts for bankruptcy. These trusts then compensate personal injury claims of those who were exposed to asbestos. In the mid-1970s, at least 56 asbestos bankruptcy trusts were established.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1890 in Pittsburgh. It is the largest wine cork maker in the world. It employs more than 3000 workers and has 26 manufacturing facilities around the world.

The company used asbestos in a variety of products like insulation, tiles, vinyl flooring, and tiles during its initial years. Workers were exposed to asbestos which can cause serious health problems like mesothelioma and lung cancer.

The asbestos-containing products of Armstrong were extensively used in residential, commercial as well as military construction industries. Because of the exposure, thousands of Armstrong workers were afflicted with asbestos-related diseases.

Although asbestos is a naturally occurring mineral, it is not safe for human consumption. It is also often referred to as a fireproofing material. Companies have created trusts in order to pay compensation to victims of the dangers of asbestos.

A trust was established to pay the victims of Armstrong World Industries' bankruptcy. The trust settled more than 200,000 claims over the first two years. The total amount of compensation was greater than $2B.

The trust is owned by Armor TPG Holdings, a private equity firm. At the start of 2013 the company held more than 25 percent of the fund.

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

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. During the 1980s, Celotex Corporation was hit with a flurry of lawsuits claiming asbestos-related property damage. These claims, Asbestos case among others included billions of dollars in damages.

Celotex filed for bankruptcy protection in the year 1990. The reorganization plan that it had created established the asbestos life expectancy Settlement Trust to process these asbestos related claims. The Trust filed a claim in the United States District Court for the Middle District of Florida. It was represented by attorneys from Saiber L.L.C.

In the course of the investigation the trust sought protection under two excess comprehensive general liability insurance policies. One policy provided five million dollars of insurance, while the other offered 6.6 million. Jim Walter Corporation was also requested to provide coverage. But, it did not find proof that the trust was required to provide an advance notice to any excess insurers.

The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31 of 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, however, the company believed that any asbestos case (http://able003.Able-company.com/bbs/board.php?bo_table=Free&wr_id=326603) litigation would affect its excess coverage. In fact, the company saw the need for many layers of excess insurance coverage. The bankruptcy court could not find any evidence that Celotex gave adequate notice to its excess insurers.

The Celotex Asbestos Settlement Trust is an extremely complex process. In addition to providing claims for asbestos-related illnesses, it also is responsible for paying out claims against Philip Carey (formerly Canadian Mine).

It can be confusing. The trust provides a user-friendly claim management tool, as well as an interactive website. A page is also available on the website to address claims deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. However, in the first quarter of 2010 the company filed for bankruptcy. The filing was filed to settle asbestos lawsuits. Then, Christy Refractories' insurance carriers have been settling asbestos-related claims at around $1 million per month.

Over 20 billion dollars distributed from asbestos trust funds since the late 1980s. These funds can be used to cover lost income and therapy expenses. 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 refractory and insulation materials, which included asbestos. In 2002, the company filed for Chapter 11 bankruptcy. However it was revived in 2006. It has 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 also used asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid over 2,000 asbestos trust fund claims. It also supplied sealing products to the oil industry.

The Prudential Lines Trust faced hundreds of lawsuits in mass tort actions and a 20 year limit on the distribution of funds.

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

The Thorpe Insulation Settlement Trust covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

The trust was first filed in 2007. Federal Mogul's Asbestos Personal Injury Trust is an investment trust designed to assist victims of asbestos litigation exposure. Federal Mogul Asbestos PI Trust, a bankruptcy trust, offers financial compensation for asbestos-related diseases.

The trust was first established in Pennsylvania with 400 million dollars of assets. Following the trust's creation, it paid out millions to those who claimed.

The trust is located in Southfield, MI. It is comprised of three separate money coffers. Each one is devoted to the administration of claims against companies that manufacture asbestos causes products for Federal-Mogul.

The main goal of the trust is to provide financial compensation for asbestos-related illnesses in the 2,000 occupations which use asbestos. The trust has already paid out more than $1 billion in claims.

The US Bankruptcy Court figured that asbestos liabilities' net value was around $9 billion. It was also decided that creditors should maximize the value of assets.

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

To deal with claims, the trust has established Trust Distribution Procedures (or TDPs). These TDPs are designed to treat all claimants equally. They are based on the historical values for substantially identical claims in the US tort system.

Reorganization protects asbestos companies against mesothelioma lawsuits

Every year thousands of asbestos lawsuits are resolved thanks to the bankruptcy courts. As a result, big corporations are employing new methods to access the judicial system. Reorganization is one such strategy. This allows the business to continue operating and provide relief to creditors who are not paid. It could also be possible to shield the company from lawsuits by individual creditors.

For instance an trust fund might be established for asbestos legal victims as a part of a reorganization. The funds could be paid out in the form of cash, gifts or a combination of both. The reorganization described above is an initial funding estimate, which is followed by a reorganization plan approved by the court. When a reorganization is approved, a trustee is assigned. This could be an individual or asbestos case a bank, or a third party. The most effective restructuring will include all participants.

The reorganization announcement not only reveals the new approach to bankruptcy courts, but also provides powerful legal tools. It's not shocking that a number of companies have filed for chapter 11 bankruptcy protection. To ensure that they are protected, some asbestos companies had no choice other than to file for chapter 7 bankruptcy. For example, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason for this is quite simple. To avoid mesothelioma-related claims, Georgia-Pacific filed for a restructuring and rolled over all its assets into one. It has been selling its most valuable assets to get control of its financial problems.

FACT Act

Currently, there is an act in Congress that is referred to as the "Furthering Asbestos Claim Transparency Act" (FACT) that will change the way asbestos trusts work. The law will make it more difficult to file fraudulent claims against asbestos trusts and will allow defendants access to all information they need in litigation.

The FACT Act requires that asbestos trusts release a list of plaintiffs on a public docket of court. It also requires them to release the names, exposure histories, and the amount of compensation paid to the claimants. These reports, which can be viewed publicly, would assist 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. The Environmental Working Group's report on FACT Act revealed that 19 House Judiciary Committee members voted for the bill. They also received campaign contributions from asbestos-related groups.

The FACT Act is a giveaway to big asbestos companies. It may also hinder the compensation process. In addition, it creates important privacy issues for victims. The bill is also a difficult piece of legislation.

The FACT Act prohibits publication of information in addition to information that must be published. It also bans the release of social security numbers, medical records or other information that is protected by bankruptcy laws. It's also harder to get 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 top achievements and found that 19 members were rewarded with campaign contributions from corporate interests.