Asbestos Bankruptcy Trusts
Companies that file for bankruptcy generally create asbestos trusts in bankruptcy. Trusts are then able to compensate personal injury claims of those who were exposed to asbestos. At least 56 asbestos bankruptcy trusts have been established in the late 1970s.
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 people and has 26 manufacturing locations all over the world.
In the beginning in the beginning, the company used asbestos in a variety of products like tiles, insulation and vinyl flooring. In the process, workers were exposed to asbestos substance, which can lead to serious health problems such as mesothelioma, lung cancer, and
https://www.mazafakas.com/ asbestosis.
The company's asbestos-containing products were extensively used in commercial, residential and military construction industry. Many Armstrong workers were exposed to asbestos, which resulted in asbestos-related diseases.
Although asbestos is a natural-occurring mineral, it is not suitable for human consumption. It is also widely used as a material for fireproofing. Companies have created trusts in order to pay compensation to victims of asbestos's dangers.
As a result of the bankruptcy of Armstrong World Industries, a trust was established to compensate those who have been affected by the company's products. In the initial two years, the trust settled more than 200,000 claims. The total compensation totaled more than $2 billion.
The trust is owned by Armor TPG Holdings, a private equity firm. The company owned more that 25 percent of the fund at the beginning of 2013.
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 has more than $2 billion in reserve to pay for claims.
Celotex Asbestos Trust
In the mid to late 1980s, Celotex Corporation, a manufacturer and distributor of building materials, was hit with numerous lawsuits alleging asbestos-related property damage. These claims, along with others, demanded billions in damages.
In 1990, Celotex filed for bankruptcy protection. The reorganization plan that it had created was a result of the creation of the Asbestos Settlement Trust to process asbestos-related claims. The Trust filed a claim 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 course of the investigation the trust sought protection under two comprehensive general liability insurance policies. One policy offered coverage for five million dollars. While the other provided coverage for 6.6 million. The trust also requested coverage from Jim Walter Corporation. It did not discover any evidence that showed the trust was legally required to give notice of additional insurances.
The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31st of 2004. The trust also filed a motion to overturn the special master's decision.
Celotex had less than $7 million of primary coverage when it filedfor bankruptcy, but was confident that future
asbestos lawyer in south dakota litigation would affect its coverage. In fact, the company anticipated the need for a number of layers of excess insurance coverage. However the bankruptcy court found no evidence that proved Celotex provided adequate notice to its excess insurance carriers.
The Celotex Asbestos Settlement Trust is an extremely complex process. In addition to making claims for asbestos-related illnesses it also has the responsibility of paying out claims against Philip Carey (formerly Canadian Mine).
The process can be confusing. Fortunately, the trust has a user-friendly tool for managing claims and an interactive web site. There is also a page on the website to address the issues with claims.
Christy Refractories Asbestos Trust
Christy Refractories originally had an insurance pool of $45 million. However, in the early part of 2010 the company filed for bankruptcy. The reason for the bankruptcy filing was to settle
asbestos attorney south dakota lawsuits. Christy Refractories' insurers have been in the process of settling asbestos claims at a rate of $1 million per month since the time of filing.
Over 20 billion dollars paid out from asbestos trust funds since the end of the 1980s. These funds can be used to pay for 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.
Products of the Thorpe Company included insulation and refractory materials. Asbestos was also a component in their products. The company filed for Chapter 11 bankruptcy in 2002, but later reemerged in 2006. It was able to handle 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,
www.mazafakas.com Inc. Successor Trust has paid out over 2,000 asbestos claims. It also supplied sealing products to the oil industry.
The Prudential Lines Trust was subject to hundreds of lawsuits, massive tort actions, and a 20 year limitation on the distribution of funds.
The Western MacArthur Asbestos Settlement Trust has paid out over $500 million in claims. It also manages 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
The trust was first filed in 2007. Federal Mogul's Asbestos Personal Injury Trust is an trust designed to assist victims of asbestos exposure. Federal Mogul Asbestos PI Trust, a bankruptcy trust, provides financial compensation for asbestos-related diseases.
The trust was first established in Pennsylvania with 400 million dollars in assets. It made payments to claimants in the millions following its establishment.
The trust is now located in Southfield, MI. It is made up of three separate funds. Each is dedicated to handling claims against asbestos-related entities of the Federal-Mogul group.
The trust's main objective is to pay financial compensation for asbestos-related illnesses in the 2,000 occupations which use asbestos. The trust has already paid more than $1 billion in claims.
The US Bankruptcy Court estimated the
asbestos attorney in enoch liabilities' value to be in the range of $9 billion. It also concluded that it was in the best interest of the creditors to increase the value of the assets they have available.
In 2007 the
asbestos lawsuit In Morgan city PI Trust (PI Trust) was established. Elihu Inselbuch was a partner at the firm Caplin & Drysdale and served as the Trust attorney.
The trust established Trust Distribution Procedures, or TDPs to deal with claims. These TDPs are intended to be fair to all claimants. They are based on historical values for claims with substantially similar characteristics in the US tort system.
Reorganization of asbestos companies helps protect them from mesothelioma lawsuits
Many asbestos lawsuits are settled each year, thanks in part to the bankruptcy courts. Large corporations are using new strategies to gain access to the legal system. One of these methods is restructuring. This allows the company's activities to continue and provides relief to those who have not paid their creditors. It may also be possible to shield the business from lawsuits filed by individuals.
For instance an trust fund might be established for asbestos-related victims as part of a restructuring. The funds can be used to pay out either in cash or gifts or the combination of both.