Brook Nestor спросил 2 года назад
Asbestos Bankruptcy Trusts
Generally, asbestos bankruptcy trusts are typically established by companies that have filed for bankruptcy. These trusts cover personal injury claims of asbestos-exposure victims. Since the mid-1970s, asbestos diagnosis at least 56 asbestos bankruptcy trusts were set up.
Armstrong World Industries Asbestos Trust
The company was founded in 1859 in Pittsburgh, PA, Armstrong World Industries is the world’s largest wine cork manufacturer. It has over three thousand employees and operates 26 manufacturing facilities around the world.
The company used asbestos in a variety of products , including tiles, insulation as well as vinyl flooring and tiles in its early years. In the process, workers were exposed to asbestos substance, which could cause serious health issues like mesothelioma or lung cancer and asbestosis.
The asbestos-containing products of Armstrong were extensively used in the residential, commercial and military construction industries. Many Armstrong workers were exposed to asbestos, resulting in asbestos-related diseases.
Although asbestos case is a naturally-occurring mineral, it is not safe for human consumption. It is also believed as a fireproofing material. Companies have set up trusts to compensate victims of the dangers of asbestos.
A trust was set up to pay the victims of Armstrong World Industries’ bankruptcy. In the first two years, the trust settled more than 200,000 claims. The total amount of compensation was more than $2 billion.
The trust is managed by Armor TPG Holdings, a private equity firm. The company held more than 25% 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 reserves to pay for claims.
Celotex Asbestos Trust
In the early and mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, faced an influx of lawsuits alleging asbestos related property damage. These claims, among other, demanded billions in damages.
Celotex filed for bankruptcy protection in 1990. To process 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 coverage under two additional comprehensive general liability insurance policies. One policy offered coverage for five million dollars, and the second policy provided coverage for 6.6 million. Jim Walter Corporation was also requested to provide coverage. But, it did not find proof that the trust was required to give notice to excess insurers.
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 decision.
Celotex had less than $7 million in primary coverage at the time of filing, but believed that future asbestos litigation could affect its excess coverage. Celotex actually anticipated the need for multiple layers of additional insurance coverage. However, the bankruptcy court found no evidence that proved Celotex gave reasonable notice to its insurance companies that had excess coverage.
The Celotex Asbestos Settlement Trust is an extremely complex process. It is responsible for paying claims against Philip Carey (formerly Canadian Mine) and providing treatment for asbestos-related diseases.
The process can be confusing. Fortunately, the trust has a user-friendly tool for managing claims as well as an interactive website. The site also has a page dedicated to claim inaccuracies.
Christy Refractories Asbestos Trust
In the beginning, Christy Refractories’ insurance pool was $45 million. The company filed for bankruptcy in 2010 however. The reason behind the filing was to resolve asbestos lawsuits. Christy Refractories’ insurers have been settlement asbestos claims for about $1 million per month for the past three years.
Since the 1980s, asbestos trust funds have dispensed more than 20 billion dollars. These funds can be used to pay for the loss of income and therapy costs. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.
Products from the Thorpe Company included insulation and refractory materials. Asbestos was also a component in their products. In 2002, the company filed for Chapter 11 bankruptcy. However it was reinstated in 2006. It has handled more than 4,500 claims.
The Western MacArthur Trust paid out more than $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all employed asbestos in their products. The United States Gypsum Company also made use of asbestos in its products.
The Utex Industries, Inc. Successor Trust has paid over 22,000 asbestos claims. It supplied sealing products to the oil extraction industry.
The Prudential Lines Trust faced hundreds of lawsuits as well as mass tort cases and a 20 year limit on disbursing the 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
The trust was first filed in 2007. Federal Mogul’s Asbestos Personal Injury Trust is an trust designed to help victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a trust in bankruptcy that offers financial compensation for illnesses that were caused by asbestos exposure.
The trust was first established in Pennsylvania with 400 million dollars in assets. Following the trust’s creation it made payments of millions to those who claimed.
The trust is now located in Southfield, MI. It is composed of three separate coffers. Each one is devoted to handling claims against asbestos product entities belonging to the Federal-Mogul group.
The main purpose of the trust is to provide financial compensation for asbestos-related diseases among the approximately 2,000 professions that utilize asbestos. The trust has already paid out more than $1 billion in claims.
The US Bankruptcy Court estimated the asbestos liabilities’ total value to be about $9 billion. It also concluded that it was in the best interest of the creditors to increase the value of assets available to them.
In 2007, the Asbestos PI Trust (PI Trust) was established. Elihu Inselbuch, a partner in the firm Caplin & Drysdale, served as the Trust attorney.
To handle claims, the trust has established Trust Distribution Procedures (or TDPs). These TDPs are designed to treat all claimants equally. They are based upon historical values for substantially identical claims in the US tort system.
Asbestos-related companies are protected from mesothelioma lawsuits if they are reorganized
Every year, thousands of asbestos lawsuits are settled by the bankruptcy courts. As such, large corporations are using new methods to gain access to the judicial system. Reorganization is one such strategy. This permits the company to continue to operate and offer relief to creditors who are not paid. Additionally, it could be possible for the company to be shielded from individual lawsuits.
For example it is possible for a trust fund to be established for asbestos diagnosis (Additional Info) victims as a part of a reorganization. The funds can be used to pay in cash, gifts, or any combination of both. The reorganization described above consists of a first funding quote that is followed by a court-approved plan. A trustee is appointed after an reorganization is approved. This could be an individual, a bank or a third party. A successful reorganization will benefit all affected.
In addition to announcing a brand new strategy for bankruptcy courts, the restructuring exposes some powerful legal tools. Therefore, it’s not surprising that many companies have filed for chapter 11 bankruptcy protection. To be on the safe side, some asbestos companies had no other choice to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason for this is quite simple. Georgia-Pacific has filed for an order of reorganization to defend itself against a spate of mesothelioma-related lawsuit. It also merged all its assets into one. To address its financial problems it has been selling its most valuable assets.
FACT Act
There is currently a bill in Congress known as the «Furthering Asbestos Claim Transparency Act» (FACT) which will change how asbestos trusts function. The law will make it more difficult to file fraudulent claims against asbestos trusts, and will grant defendants unlimited access to information in litigation.
The FACT Act requires asbestos trusts to publish a list of claimants in an open court docket. They must also provide the names and exposure history as well as compensation amounts they pay these claimants. These reports, which are able to be seen by the public, could assist in preventing fraud.
The FACT Act would also require trusts to disclose other information, including payment details even when they were part of confidential settlements. In fact the report on 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 for large asbestos companies. It would also cause a delay in the process of compensation. It also raises privacy concerns for victims. In addition the bill is a complex piece of legislation.
The FACT Act prohibits publication of information in addition to the information that has to be published. It also prohibits the release of social security numbers, medical records or other information protected by bankruptcy laws. The act also makes it harder to get justice in the courtroom.
The FACT Act is a red herring, besides the obvious question of how victims could be compensated. The Environmental Working Group examined the House Judiciary Committee’s greatest achievements and found that 19 members were rewarded by corporate contributions to campaigns.
