Asbestos Bankruptcy Trusts

Companies that file for bankruptcy generally create asbestos trusts for bankruptcy. These trusts cover personal injury claims made by asbestos exposure victims. At least 56 asbestos bankruptcy trusts have been set up since the mid-1970s.

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 26 manufacturing plants worldwide.

During the early years, the company used asbestos in a variety of products such as insulation, tiles and vinyl flooring. Workers were exposed to asbestos, which can lead to serious health issues like mesothelioma and lung cancer.

The asbestos treatment-containing products of the company were widely employed in commercial, residential, as well as military construction industries. As a result of this exposure hundreds of Armstrong workers were afflicted with malignant asbestos-related diseases.

Although asbestos is a naturally occurring mineral, it isn't safe for human consumption. It is also known as a fireproofing substance. Because of the risks associated with asbestos, businesses have established trusts to pay victims.

A trust was created to pay the victims of Armstrong World Industries' bankruptcy. The trust settled more than 200,000 claims during the first two years. The total compensation amount was more than $2 billion.

Armor TPG Holdings, which is a private equity company is the trustee of the trust. The company owned more than 25% of the fund at the beginning of 2013.

According to the Asbestos Victims Compensation Trust the company was responsible for more that $1 billion in personal injury claims. The trust holds more than $2 billion in reserves to pay claims.

Celotex Asbestos Trust

In the mid to late 1980s, Celotex Corporation, a manufacturer and distributor of building materials, faced an avalanche of lawsuits claiming asbestos-related property damage. These claims, among others claimed billions of dollars in damages.

In 1990, Celotex filed for bankruptcy protection. To process asbestos-related claims, the asbestos lawyers 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. It was represented by attorneys from Saiber L.L.C.

In the process, the trust sought coverage under two excess comprehensive general liability insurance policies. One policy offered five million dollars of insurance and the other 6.6 million. The trust also requested coverage from Jim Walter Corporation. However, the trust did not find evidence that the trust was required to send notice to excess insurers.

Celotex Asbestos Trust submitted proofs of bodily injuries claims on December 31st of 2004. The trust also moved to rescind the special master's decision.

Celotex had less than $7 million of primary coverage at the time of filing but believed that future asbestos litigation could affect its excess coverage. In reality, the company was aware of the need for multiple layers of additional insurance coverage. The bankruptcy court did not find any evidence that Celotex gave adequate notice to its insurers who were in excess.

The Celotex Asbestos Settlement Trust is an intricate process. In addition to settling claims for asbestos-related diseases, it also is responsible for making payments to Philip Carey (formerly Canadian Mine).

The process can be confusing. The trust offers a simple claim management tool, as well as an interactive website. The site also has an area dedicated to claims inaccuracies.

Christy Refractories Asbestos Trust

In the beginning, Christy Refractories' insurance pool was $45 million. In the beginning of 2010 the company filed for bankruptcy. The reason for the bankruptcy filing was to settle asbestos lawsuits. Then, Christy Refractories' insurance carriers have been settling Asbestos Lawyer (Utahsyardsale.Com)-related claims at roughly $1 million per month.

Since the 1980s, asbestos trust funds have paid out more than 20 billion dollars. These funds can be used to pay for lost income and therapy costs. Some of these funds include the Western MacArthur Trust, here. the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

Products of the Thorpe Company included insulation and refractory materials. Asbestos was also used in their products. The company filed for Chapter 11 bankruptcy in 2002 However, it reemerged in 2006. It has dealt with 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 utilized asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid more than 2,000 asbestos claims. It also supplied sealing materials to the oil extraction industry.

The Prudential Lines Trust faced hundreds of lawsuits in mass tort actions 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 covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

Federal Mogul's Asbestos Personal Injury Trust was initially filed in 2007. It is a trust that assists victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a trust in bankruptcy which provides financial compensation for illnesses that were caused by asbestos exposure.

The trust was founded in Pennsylvania with 400 million dollars of assets. It made payments to claimants in the millions following its establishment.

The trust is currently located at Southfield, MI. It is composed of three separate money coffers. Each is dedicated to handling claims against asbestos product entities of the Federal-Mogul group.

The trust's main purpose is to offer financial compensation for asbestos-related illnesses within the approximately 2,000 professions that employ asbestos. The trust has already paid more than $1 billion in claims.

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

The Asbestos PI Trust was created in 2007. 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 be fair to all claimants. They are based on historical standards for claims with substantially similar characteristics in the US tort system.

Reorganization helps asbestos companies protect themselves from mesothelioma lawsuits

Thousands of asbestos lawsuits are settling every year, thanks in part, to bankruptcy courts. As a result, big companies are implementing new strategies to access the judicial system. One of these methods is reorganization. This permits the company to continue to run and provides relief to unpaid creditors. It may also be possible to protect the company from lawsuits by individual creditors.

For example, a trust fund may be set up to help asbestos victims as part of a restructuring. These funds can be distributed in the form of gifts, cash, or some combination thereof. The reorganization mentioned above is an initial funding quotation that is followed by a court-approved reorganization plan. A trustee is appointed after a reorganization has been approved. This could be an individual or a bank third party. Generallyspeaking, the most efficient restructuring will benefit all parties involved.

Alongside announcing a fresh strategy for bankruptcy courts, the restructuring exposes some powerful legal tools. It's not surprising that many companies have filed for chapter 11 bankruptcy protection. Some asbestos companies were forced to make chapter 7 bankruptcy filings in order to protect themselves. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason is straightforward. Georgia-Pacific filed for an order of reorganization to defend itself against a spate of mesothelioma lawsuits. It also merged all its assets into one. It has been selling its most valuable assets to gain rid of its financial woes.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it more difficult to claim fraudulently against asbestos trusts. The legislation will make it harder to submit fraudulent claims against asbestos trusts, and will allow defendants unlimited access to information during litigation.

The FACT Act requires asbestos trusts to publish the list of claimants in a public court docket. It also requires them to disclose the names of the claimants, their exposure histories, as well as compensation amounts paid to the claimants. These reports, which are able to be viewed by the public, will help prevent fraud.

The FACT Act would also require trusts to divulge any other information, including payment details even if they're 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 contributions from asbestos interests.

The FACT Act is a giveaway for on the main page asbestos companies with huge profits. It could also hinder the compensation process. In addition, it creates significant privacy concerns for victims. The bill is also a complex piece of legislation.

In addition to the information that has to be released in the FACT Act, the FACT Act also prohibits the release of social security numbers, medical records and other information that is protected by bankruptcy laws. The act also makes it harder to seek justice in the courtroom.

The FACT Act is a red herring, besides the obvious question about how victims could be compensated. The Environmental Working Group examined the House Judiciary Committee's most noteworthy achievements and found that 19 members were rewarded by donations from corporations.