Annmarie Mattes спросил 2 года назад
Asbestos Bankruptcy Trusts
Companies that file for bankruptcy typically establish asbestos trusts for bankruptcy. These trusts then cover personal injury claims for those who were exposed to asbestos. Since the mid-1970s at least 56 asbestos bankruptcy trusts were created.
Armstrong World Industries Asbestos Trust
Armstrong World Industries was founded in the year 1860 in Pittsburgh. It is the largest wine cork maker in the world. It has more than 3000 employees and has 26 manufacturing facilities across the globe.
During the early years the company employed asbestos in a variety products including tiles, insulation, and vinyl flooring. This meant that workers were exposed substance, which can lead to serious health issues such as mesothelioma and lung cancer and asbestosis.
The company’s asbestos-containing materials were extensively used in commercial, residential and military construction industry. Due to the exposure to asbestos, thousands of Armstrong workers were afflicted with asbestos-related diseases.
Although asbestos is a mineral that occurs naturally however, it isn’t safe to be consumed by humans. It is also known to be a fireproofing material. Because of the dangers that come with asbestos, businesses have established trusts to pay victims.
A trust was set up to compensate victims of Armstrong World Industries’ bankruptcy. In the initial two years, the trust settled more than 200k claims. The total amount of compensation was greater than $2 billion.
The trust is owned by Armor TPG Holdings, a private equity firm. The company owned more than 25 percent of the fund at the beginning of 2013.
According to the hackettstown asbestos lawyer Victims Compensation Trust the company was liable for more that $1 billion in personal injury claims. The trust holds more than $2 billion in reserves to pay for claims.
Celotex Asbestos Trust
In the early to mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, was hit with an avalanche of lawsuits claiming asbestos related property damage. These claims, among other were a slew of billions of dollars in damages.
Celotex filed for bankruptcy protection in 1990. The reorganization plan it was part of created the Asbestos Settlement Trust to process these 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 course of the investigation the trust sought protection under two excess general liability insurance policies that were comprehensive. One policy provided coverage for five million dollars, whereas the other provided coverage for 6.6 million. Jim Walter Corporation was also requested to provide coverage. However, the trust did not find proof that the trust was required to provide information to insurers who are not covered.
Celotex Asbestos Trust submitted proofs of bodily injuries claims on December 31 2004. The trust also filed a motion to set aside the special master’s determination.
Celotex had less than $7 million in primary coverage at the time of filing, however, it believed that any future asbestos litigation would impact its coverage for excess. The company actually anticipated the need for multiple layers of additional insurance coverage. However the bankruptcy court ruled that there was no evidence to establish that Celotex gave adequate notice to its insurance companies that had excess coverage.
The Celotex Asbestos Settlement Trust is complex. In addition to making claims for asbestos-related diseases, it also has the responsibility of paying claims against Philip Carey (formerly Canadian Mine).
The process can be difficult. Fortunately, the trust offers a user-friendly tool for managing claims and an interactive website. A page is also available on the site that addresses claims issues.
Christy Refractories Asbestos Trust
At first, Christy Refractories’ insurance pool was worth $45 million. The company was declared bankrupt in 2010 however. The filing was done to settle asbestos lawsuits. Afterwards, Christy Refractories’ insurance carriers have been settling asbestos-related claims for about $1 million per month.
Since the 1980s, asbestos trust funds have been paid out more than 20 billion dollars. 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 clarksville Asbestos Lawsuit Trust.
The Thorpe Company’s offerings included refractory and insulation materials, which contained asbestos. The company filed for Chapter 11 bankruptcy in 2002, but later reemerged in 2006. It dealt with 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, Inc. Successor Trust has paid more than 2,000 stockton asbestos lawsuit claims. It also supplied sealing materials to the oil industry.
The Prudential Lines Trust faced hundreds of lawsuits as well as mass tort cases and a 20 year limit on the distribution of funds.
The Western MacArthur Asbestos Settlement Trust paid out more than $500 million in claims. It also handles 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 Personal Injury Trust was originally filed in 2007. It is an trust designed to aid those suffering from asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust that offers financial compensation for illnesses that were caused by asbestos exposure.
The trust was first established in Pennsylvania with 400 million dollars of assets. It made payments to claimants in the millions after its creation.
The trust is now located in Southfield, MI. It is comprised of three separate coffers. Each one is dedicated to handling claims against asbestos-related entities of the Federal-Mogul group.
The primary goal of the trust is to pay the financial compensation needed for asbestos-related illnesses in the 2,000 or so occupations that employ el mirage asbestos attorney. The trust has already paid more than $1 billion in claims.
The US Bankruptcy Court estimated the net value of asbestos liabilities to be in the range of $9 billion. It was also determined 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.
The trust has established Trust Distribution Procedures, or clarksville Asbestos Lawsuit TDPs, to handle claims. These TDPs are designed to be fair to all claimants. They are based upon historical data for claims with substantially similar characteristics in the US tort system.
Asbestos-related companies are protected from mesothelioma lawsuits with reorganization
Thousands of grosse pointe asbestos lawyer lawsuits are settled every year, thanks in part to bankruptcy courts. Large companies are now employing new methods to gain access to the judicial system. Reorganization is a common strategy. It allows the business’s operations to continue, and offers relief to unpaid creditors. It could also be possible to shield the business from lawsuits by individual creditors.
For instance an trust fund might be established for asbestos-related victims as part of a restructuring. These funds can be distributed in the form of cash, gifts or other forms of payment. The reorganization discussed above consists of an initial funding quote and is followed by a reorganization program approved by the court. When a reorganization is approved and a trustee is appointed. This could be an individual, a bank or a third party. The most effective restructuring will include all participants.
In addition to announcing a brand new strategy for bankruptcy courts, the reorganization offers some effective legal tools. Hence, it’s no wonder that a number of companies have filed for chapter 11 bankruptcy protection. Certain asbestos-related companies were forced to file chapter 7 bankruptcy in order to be safe. Georgia-Pacific LLC, for example, filed chapter 7 bankruptcy in 2009. The reason is easy. Georgia-Pacific filed for an order of reorganization to protect itself against a rash mesothelioma-related lawsuit. It also rolled all its assets into one. It has been selling its most valuable assets to take the financial gimmicks under control.
FACT Act
Presently, there is a bill in Congress known as the «Furthering Asbestos Claim Transparency Act» (FACT) which will change how asbestos trusts function. The legislation will make it harder to claim fraudulent claims against asbestos trusts, and will give defendants unlimited access to information during litigation.
The FACT Act requires asbestos trusts to publish the list of claimants in a public court docket. They are also required to release the names of those who have been exposed, as well as the exposure history and compensation amounts paid to the claimants. These reports, which are publically available, could prevent fraud from happening.
The FACT Act would also require trusts that they disclose any other information such as payment details, even if they are part of confidential settlements. The Environmental Working Group’s report on FACT Act found that 19 House Judiciary Committee members voted in favor of the bill. They also received campaign contributions from asbestos-related interests.
The FACT Act is a giveaway for large asbestos companies. It could also hinder the process of compensation. It also creates privacy issues for victims. The bill is also a difficult piece of legislation.
In addition to the information required 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. It is also more difficult to seek justice in courtrooms.
Aside from the obvious question of how a victim’s compensation may be affected by the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee’s greatest accomplishments and discovered that 19 members were awarded campaign contributions from corporate interests.
