Asbestos Bankruptcy Trusts

Companies who file for bankruptcy typically establish asbestos trusts in bankruptcy. These trusts then compensate personal injury claims of those who were exposed to asbestos. In the mid-1970s, at least 56 cheverly asbestos bankruptcy trusts were set up.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in the year 1860 in Pittsburgh. It is the largest wine cork producer in the world. It has over three thousand employees and operates 26 manufacturing facilities across the globe.

In the beginning, the company used asbestos in a variety of items, including tiles, insulation and vinyl flooring. Workers were exposed to asbestos, which could cause serious health issues like mesothelioma and lung cancer.

The asbestos-containing products of Armstrong were extensively employed in commercial, residential and military construction industries. Many Armstrong workers were exposed to asbestos, resulting in asbestos-related illnesses.

Although asbestos is a naturally occurring mineral however, it is not safe to consume by humans. It is also known as a fireproofing substance. Companies have set up trusts to compensate victims of asbestos' dangers.

As a result of the bankruptcy of Armstrong World Industries, a trust was established to pay the people who were affected by Armstrong World Industries' products. The trust was able to pay out more than 200,000 claims over the first two years. The total compensation amount was more than $2 billion.

The trust is managed 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 was accountable for more that $1 billion in personal injuries claims. The trust has more than $2 billion in reserve to pay claims.

Celotex Asbestos Trust

In the mid to late 1980s, Celotex Corporation, a manufacturer and distributor of building materials, had to contend with an influx of lawsuits alleging asbestos related property damage. These claims, in addition to other were a slew of billions of dollars in damages.

Celotex filed for bankruptcy protection in the year 1990. Its reorganization plan was a result of the creation of the Asbestos Settlement Trust to process asbestos related claims. The Trust made a claim in the United States District Court for Middle District of Florida. It was represented by lawyers 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 for five million dollars, whereas the other policy offered coverage of 6.6 million. Jim Walter Corporation was also asked to provide coverage. It could not find any evidence to suggest that the trust was legally required to give notice to additional insurances.

Celotex Asbestos Trust submitted proofs of bodily injuries claims on December 31 the year 2004. The trust also filed a motion to rescind the special master's determination.

Celotex had less than $7 million in primary coverage at the time of filing, but was of the opinion that asbestos litigation could affect its coverage for excess. In fact, the firm saw the need for many layers of extra insurance coverage. The bankruptcy court was unable to find any evidence to suggest that Celotex provided a reasonable notice to its insurers who were in excess.

The Celotex Asbestos Settlement Trust is a complex process. It is responsible for paying claims against Philip Carey (formerly Canadian Mine) and providing treatment for asbestos-related illnesses.

The process can be confusing. Fortunately, the trust has a user-friendly claims management tool as well as an interactive website. A page is also available on the trust's website that addresses the issues with claims.

Christy Refractories Asbestos Trust

In the beginning, Christy Refractories' insurance pool was $45 million. However, in early 2010, the company filed for bankruptcy. The reason for filing was to settle warrenton asbestos lawsuits. Christy Refractories' insurers have been in the process of settling Malverne Asbestos claims at a rate of $1 million per month since then.

There have been more than 20 billion dollars released from asbestos trust funds since the late 1980s. These funds can be used to cover lost income and therapy costs. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust, and the M.H. Porter Asbestos Trust.

The products of the Thorpe Company included insulation and refractory materials. Asbestos was also found in their products. The company filed for Chapter 11 bankruptcy in 2002 However, it reemerged in the year 2006. It has dealt with more than 4,500 claims.

The Western MacArthur Trust has paid out over $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all employed asbestos in their products. The United States Gypsum Company also employed asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid more than 22,000 asbestos claims. It also supplied sealing products to the oil industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, mass tort actions, and a twenty year period for the disbursement of funds.

The Western MacArthur Asbestos Settlement Trust paid out more than $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

Federal Mogul's Asbestos Personal Injury Trust was first created in 2007. It is a trust designed to assist victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a trust in bankruptcy that offers financial compensation for diseases that were caused by asbestos exposure.

The trust was established in Pennsylvania with 400 million dollars in 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 is devoted to the administration of claims against entities who produce asbestos products for Federal-Mogul.

The primary objective of the trust is to provide financial compensation for asbestos-related diseases among the approximately 2,000 jobs that require asbestos. The trust has paid out more than $1 billion in claims.

The US Bankruptcy Court estimated the net value of asbestos liabilities to be approximately $9 billion. It also concluded that it was in the best interest of the creditors to maximize the value of the assets they have access to.

In 2007 the Asbestos PI Trust (PI Trust) was established. Elihu Inselbuch was a partner at the firm Caplin & Drysdale and served as the Trust attorney.

The trust created Trust Distribution Procedures, or TDPs to deal with claims. These TDPs are designed to treat all claimants equally. They are based on the past precedents for nearly identical claims in the US tort system.

Asbestos companies are shielded from mesothelioma lawsuits if they are reorganized

Thousands of asbestos lawsuits are settling every year, thanks in part to the bankruptcy courts. As such, large corporations are employing new strategies to gain access to the court system. Reorganization is one strategy. This permits the company to continue to run and provides relief to those who have not paid their creditors. Additionally, it could be possible for the company to be protected from individual lawsuits.

For example, a trust fund may be set up to help dunlap asbestos victims as part of a restructuring. These funds can be distributed in the form of cash, gifts or a combination of both. The reorganization described above is an initial funding estimate that is followed by a court-approved reorganization strategy. A trustee is appointed once an reorganization is approved. This could be an individual or a bank, or a third party. The most effective reorganization will benefit all who are involved.

The reorganization doesn't just announce a new strategy to bankruptcy courts, malverne Asbestos but also offers powerful legal tools. It's not surprising that many companies have applied for chapter 11 bankruptcy protection. To ensure that they are protected asbestos companies have no other choice other than to file chapter 7 bankruptcy. For instance, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason is simple. Georgia-Pacific requested an order of reorganization in order to protect itself against a rash mesothelioma lawsuits. It also rolled all its assets into one. It has been selling its most valuable assets to take rid of its financial woes.

FACT Act

Currently, there is an act in Congress, called the "Furthering Asbestos Claim Transparency Act" (FACT) which will alter the way asbestos trusts function. The legislation will make it much more difficult to file fraudulent claims against asbestos trusts and will grant defendants access to unlimited information in litigation.

The FACT Act requires asbestos trusts to publish the names of claimants on the public docket of the court. They are also required to release the names of those who have been exposed, as well as the exposure history and compensation amounts paid out to these claimants. These reports, which are publicly available, could prevent fraud from occurring.

The FACT Act would also require trusts to share other information, such as payment details even when 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 donations from asbestos interests.

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

In addition to the information that has to be made public, the FACT Act also prohibits the publication of social security numbers, medical records as well as other information protected under bankruptcy laws. The law also makes it harder to obtain justice in the courtroom.

Aside 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 accomplishments and found that 19 members were paid campaign contributions from corporations.