Asbestos Bankruptcy Trusts

Generally asbestos bankruptcy trusts are typically established by companies that have filed for bankruptcy. Trusts are then able to pay personal injury claims for those who were exposed to asbestos. Since the mid-1970s, at least 56 asbestos bankruptcy trusts have been established.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1860 in Pittsburgh. It is the largest wine cork manufacturer in the world. It employs more than 3,000 people and has 26 manufacturing locations all over the world.

The company used asbestos in a variety of products , including insulation, tiles vinyl flooring, and tiles during its initial years. As a result, workers were exposed to the substance, which can lead to serious health issues, such as mesothelioma and lung cancer and asbestosis.

The asbestos-containing products of the company were extensively used in residential, commercial as well as military construction industries. Many Armstrong workers were exposed to asbestos, resulting in asbestos-related illnesses.

Although asbestos is a natural-occurring mineral, it is not suitable for human consumption. It is also known as a fireproofing material. Because of the dangers associated with asbestos, many companies have established trusts to compensate victims.

A trust was set up to pay the victims of Armstrong World Industries' bankruptcy. In the first two years, the trust paid more than 200 thousand claims. The total amount of compensation was greater than $2 billion.

Armor TPG Holdings, which is a private equity company holds 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 is estimated to be accountable for more than $1 billion in personal injury claims. The trust has more than $2 billion in reserve to cover claims.

Celotex Asbestos Trust

In the early and Read This method mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, was hit with a flood of lawsuits alleging asbestos related property damage. These claims, among other claimed billions of dollars of damages.

In 1990, Celotex filed for bankruptcy protection. To deal with asbestos-related claims the Asbestos Settlement Trust was created through Celotex's reorganization program. 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 course of the investigation, the trust sought coverage under two general liability insurance policies. One policy provided five million dollars of insurance and the other 6.6 million. Jim Walter Corporation was also requested to provide coverage. It did not find any evidence that the trust was legally required to give notice to excess insurances.

The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31st in 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 however, it believed that any future asbestos litigation would impact its coverage for excess. The company actually anticipated the need for several layers of excess insurance coverage. The bankruptcy court did not 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 complicated process. It is responsible for settling claims against Philip Carey (formerly Canadian Mine) and provides treatment for asbestos-related illnesses.

The process can be complicated. Fortunately, the trust has a user-friendly tool for managing claims and an interactive web site. The website also features a page dedicated to claim inaccuracies.

Christy Refractories Asbestos Trust

Originally, Christy Refractories' insurance pool was $45 million. The company filed for bankruptcy in 2010, however. The reason for the filing was to settle asbestos lawsuits. Then, Christy Refractories' insurance carriers have been settling asbestos-related claims at about $1 million per month.

Since the 1980s, asbestos trust funds have dispensed more than 20 billion dollars. These funds cover the cost of therapy and lost income. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust, the Thorpe Insulation Settlement Trust, and the M.H. Porter Asbestos Trust.

The Thorpe Company's offerings included insulation and refractory materials which contained asbestos. The company filed for Chapter 11 bankruptcy in 2002 however it was revived in the year 2006. It 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 made use of asbestos lawsuit in their products. The United States Gypsum Company used asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid out over 22,000 asbestos claims. It provided sealing products to the oil industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, mass tort actions, and a twenty year time limit on the distribution 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 covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

Federal Mogul's Asbestos Personal Injury Trust was originally filed in 2007. It is a trust that assists victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust which provides financial compensation for ailments that resulted from asbestos exposure.

The trust was founded in Pennsylvania with 400 million dollars of assets. Following the trust's creation it made payments of millions to people who were claiming.

The trust is currently located in Southfield, MI. It is comprised of three separate money coffers. Each one is devoted to the administration of claims against companies that manufacture asbestos products for Federal-Mogul.

The trust's primary goal is to provide financial compensation for asbestos-related diseases in the nearly 2,000 occupations which use asbestos survival rate. The trust has paid more than $1 billion in claims.

The US Bankruptcy Court figured that the asbestos liabilities' net value was approximately $9 billion. It was also determined that creditors should maximize the value of their assets.

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.

To handle claims, the trust has established Trust Distribution Procedures (or TDPs). These TDPs are designed to treat all claimants equally. They are based on historical values for claims that are substantially comparable in the US tort system.

Reorganization protects asbestos lawyer companies against mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled thanks to the bankruptcy courts. Large corporations are now employing new methods to gain access to the legal system. Reorganization is one such strategy. This allows the company's operations to continue and also provides relief to those who have not paid their creditors. It is also possible to protect the company from lawsuits filed by individuals.

For instance an trust fund might be set up for asbestos victims as part of a restructuring. The funds could be paid out in the form of gifts, cash or any combination of the two. The reorganization described above is an initial funding quote and is followed by a reorganization program approved by the court. Once a reorganization has been approved and a trustee is appointed. This could be an individual or bank, or even a third party. In general, the most effective reorganization will provide for all parties involved.

The reorganization not only announces the new approach to bankruptcy courts, but also unveils powerful legal tools. It's not surprising that many companies have filed for chapter 11 bankruptcy protection. To be on the safe side asbestos symptoms companies have no choice other than to file chapter 7 bankruptcy. For example, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason is simple. Georgia-Pacific applied for an order of reorganization to defend itself against a spate of mesothelioma suit. It also merged all its assets into one. To tackle its financial woes it has been selling its most important assets.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it more difficult to claim fraudulently against asbestos life expectancy (read this post from www.xn--9i1bu41a4e8u.xn--3e0b707e) trusts. The legislation will make it much more difficult to file fraudulent claims against asbestos trusts, and will give defendants access to all information they need in litigation.

The FACT Act requires asbestos trusts to publish a list of claimants in a public court docket. They are also required to disclose the names as well as the history of exposure and compensation amounts they pay these claimants. These reports, which are publicly available, could prevent fraud from happening.

The FACT Act would also require trusts to share other information, including payment details even when they were part of confidential settlements. The Environmental Working Group's report on FACT Act revealed that 19 House Judiciary Committee members voted for the bill. They also received campaign contributions from asbestos-related groups.

The FACT Act is a giveaway to big asbestos companies. It will also result in a delay in the process of compensation. It also raises privacy concerns for victims. The bill is also a complex piece of legislation.

In addition to the information that has to be made public 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. It's also harder to obtain justice in courts.

The FACT Act is a red herring, besides the obvious question of the compensation for victims. The Environmental Working Group examined the House Judiciary committee's most notable achievements and discovered that 19 members were rewarded by donations from corporations.