Asbestos Bankruptcy Trusts
Generally asbestos bankruptcy trusts are typically established by companies who have filed for bankruptcy. They pay personal injury claims made by asbestos exposure victims. Since the mid-1970s, at least 56 asbestos bankruptcy trusts were established.
Armstrong World Industries Asbestos Trust
It was established in 1860 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork producer. It has more than three thousand employees and 26 manufacturing plants worldwide.
The company employed asbestos in a variety of products including tiles, insulation vinyl flooring, and tiles during its early years. This meant that workers were exposed to the material, which can cause serious health issues, such as mesothelioma or lung cancer and asbestosis.
The asbestos-containing products of the company were widely used in commercial, residential as well as military construction industries. Many Armstrong workers were exposed to asbestos, which resulted in asbestos-related diseases.
Although asbestos is a naturally-occurring mineral, it isn't safe for human consumption. It is also often referred to as a fireproofing material. Because of the risks associated with asbestos, companies have established trusts to pay victims.
A trust was established to compensate victims of Armstrong World Industries' bankruptcy. The trust was able to pay out more than 200,000 claims during the first two years. The total compensation amount was more than $2 billion.
The trust is owned by Armor TPG Holdings, a private equity firm. At the start of 2013, the company owned more than 25 percent of the fund.
According to the
asbestos claim Victims Compensation Trust, the company is estimated to be responsible for more than $1 billion in personal injury claims. The trust has more than $2 billion in reserve to pay for claims.
Celotex Asbestos Trust
Celotex Corporation was a distributor and manufacturer of building materials. In the 1980s, Celotex Corporation was hit by a flurry of lawsuits alleging asbestos-related property damage. These claims, among others claimed billions of dollars in damages.
Celotex filed for bankruptcy protection in the year 1990. To settle asbestos-related claims the Asbestos Settlement Trust was created in the reorganization plan of Celotex. The Trust submitted a claim to the United States District Court for Middle District of Florida. Saiber L.L.C. represented the Trust.
In the process, the trust sought coverage under two excess general liability insurance policies. One policy offered five million dollars in coverage while the other provided 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 to additional insurances.
Celotex Asbestos Trust submitted proofs of bodily injuries claims on December 31st, 2004. The trust also made a motion to rescind the special master's decision.
Celotex had less than $7 million in primary insurance when it filedfor bankruptcy, however, it they believed that asbestos litigation in the future would affect its excess coverage. Celotex was aware of the need for several layers of excess insurance coverage. However the bankruptcy court concluded that there was no evidence to establish that Celotex provided adequate notice to its insurance providers who had excess coverage.
The Celotex Asbestos Settlement Trust is an extremely complex process. It is responsible for settling claims against Philip Carey (formerly Canadian Mine) and provides treatment for asbestos-related diseases.
It can be confusing. Fortunately, the trust has an easy to use claims management tool and a user-friendly website. A page is also available on the trust's website that addresses claims issues.
Christy Refractories Asbestos Trust
Christy Refractories originally had an insurance pool of $45 million. However, in early 2010 the company filed for bankruptcy. The reason behind the filing was to sort out asbestos lawsuits. Christy Refractories' insurers have been settlement asbestos claims for about $1 million per month since.
There have been more than 20 billion dollars paid out from asbestos trust funds from the late 1980s onwards. These funds can be used to pay for lost income as well as therapy costs. Some of these funds include the Western MacArthur Trust, the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust,
affinis.co.kr and the M.H. Porter Asbestos Trust.
The Thorpe Company's products included insulation and refractory materials, which included asbestos. The company filed for Chapter 11 bankruptcy in 2002 however it was revived in 2006. It was able to handle more than 4,500 claims.
The Western MacArthur Trust has paid out over $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 more than 22,000 asbestos claims. It supplied sealing products to the oil industry.
The Prudential Lines Trust was subject to hundreds of lawsuits, massive tort actions, and a 20 year limit on the disbursement of funds.
The Western MacArthur Asbestos Settlement Trust has paid more than $500 million in claims. It also manages Yarway claims.
The Thorpe Insulation Settlement Trust includes the Pacific Insulation Company as well as the Thorpe Insulation Company.
Federal Mogul's Asbestos PI Trust
In 2007, the trust was originally filed. Federal Mogul's
asbestos prognosis Personal Injury Trust is an trust designed to help victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust that offers financial compensation for ailments that resulted from asbestos exposure.
The initial assets of $400 million were used to establish the trust in Pennsylvania. It paid out millions of dollars to claimants after its creation.
The trust is located in Southfield, MI. It is composed of three separate coffers. Each is dedicated to the management of claims against entities that produce asbestos products for Federal-Mogul.
The primary objective of the trust is to provide the financial compensation needed for asbestos-related illnesses within the 2,000 professions that utilize
asbestos trust fund (
click here to visit www.bebin.ca for free). The trust has paid more than $1 billion in claims.
The US Bankruptcy Court figured that asbestos liabilities' net value was about $9 billion. It was also decided that creditors should maximize the value of their 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 created Trust Distribution Procedures (or TDPs). These TDPs are designed 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
Thousands of asbestos lawsuits are settling every year, thanks in part to bankruptcy courts. In this way, large corporations are employing innovative methods to gain access to the judicial system. One of these strategies is reorganization. This permits the company to continue operating and provide relief to creditors who are not paid. It is also possible to shield the business from lawsuits by individual creditors.
For instance, in an organization reorganization, a trust fund for asbestos victims might be set up. These funds may pay out in the form of gifts, cash or other forms of payment. The reorganization mentioned above is comprised of an initial funding proposal and a plan that has been approved by the court. When a reorganization is approved and a trustee is designated.