Asbestos Bankruptcy Trusts

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

Armstrong World Industries Asbestos Trust

In 1860, when it was first established in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork maker. It employs over 3000 people and has 26 manufacturing plants across the globe.

The company used asbestos in a variety of products including tiles, insulation vinyl flooring, and tiles during its early days. This meant that workers were exposed to asbestos substance, which can lead to serious health issues like mesothelioma and lung cancer and asbestosis.

The company's asbestos-containing products were extensively used in residential, commercial and military construction industry. Many Armstrong workers were exposed to asbestos, resulting in asbestos-related illnesses.

While asbestos is a naturally occurring mineral, it isn't safe for human consumption. It is also known as a fireproofing material. Due to the dangers associated with asbestos, businesses have established trusts to compensate victims.

In the aftermath of the bankruptcy of Armstrong World Industries, a trust was set up to compensate those who have been affected by the company's products. In the first two years, this trust paid out more than 200 thousand claims. The total amount of compensation was more than $2 billion.

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

According to the Asbestos Victims Compensation Trust, the company is estimated to be responsible for more that $1 billion in personal injury claims. The trust has over $2 billion in reserves for paying claims.

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. In the 1980s, Celotex Corporation was hit by a flurry of lawsuits that claimed asbestos-related property damage. These claims, along with others claims, demanded billions of dollars in damages.

Celotex filed for bankruptcy protection in 1990. To process asbestos-related claims, the Asbestos Settlement Trust was created by Celotex's reorganization plan. The Trust filed an action in the United States District Court for the Middle District of Florida. Saiber L.L.C. represented the Trust.

In the process the trust sought to secure coverage under two comprehensive general liability insurance policies. One policy offered five million dollars of insurance while the other provided 6.6 million. Jim Walter Corporation was also requested to provide coverage. The trust did not find any evidence that suggested that the trust was required by law to give notice to additional insurances.

Celotex Asbestos Trust submitted proofs of bodily injury claims on December 31 the year 2004. The trust also filed a motion 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 affect its coverage for excess. In fact, the company was aware of the need for multiple layers of additional insurance coverage. However the bankruptcy court concluded that there was no evidence to show that Celotex gave reasonable notice to its excess insurance providers.

The Celotex Asbestos Settlement Trust is an extremely complex process. In addition to providing claims for asbestos-related ailments, it also is responsible for paying out claims against Philip Carey (formerly Canadian Mine).

It can be difficult to understand. Fortunately, the trust offers an easy-to-use claims management tool and a user-friendly website. The website also has an area dedicated to claims deficiencies.

Christy Refractories Asbestos Trust

In the beginning, Christy Refractories' insurance pool was worth $45 million. However, in the first quarter of 2010 the company filed for bankruptcy. 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 are able to cover the cost of therapy and lost income. The funds that are included in these are the Western MacArthur Trust, the M.H. Detrick asbestos compensation Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

The Thorpe Company's products included insulation and refractory materials which included asbestos. The company filed for Chapter 11 bankruptcy in 2002 and resurfaced in the year 2006. It handled 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 over 22,000 asbestos claims. It supplied sealing products to the oil industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, massive tort actions, and a twenty year limitation on the distribution of funds.

The Western MacArthur Asbestos Settlement Trust has 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

The trust was first filed in 2007. Federal Mogul's Asbestos Personal Injury Trust was filed in 2007 and is an investment trust designed to assist victims of asbestos exposure. Federal Mogul Asbestos PI Trust is a trust in bankruptcy that provides financial compensation for asbestos-related illnesses.

Initial assets of $400 million were used to create the trust in Pennsylvania. It paid out millions of dollars to claimants when it was established.

The trust is located in Southfield, MI. It is composed of three separate money coffers. Each one is devoted to settling claims against asbestos-related entities belonging to the Federal-Mogul group.

The trust's main purpose is to provide financial compensation for asbestos-related illnesses in the 2,000 occupations that employ asbestos lawyer. The trust has already paid more that $1 billion in claims.

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

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 established Trust Distribution Procedures (or TDPs). These TDPs are designed to be fair to all claimants. They are based upon past precedents for nearly identical claims in the US tort system.

Reorganization protects asbestos companies against mesothelioma lawsuits

Thousands of asbestos lawsuits are settling every year, due in part to bankruptcy courts. Large corporations are now employing new methods to gain access to the legal system. One such technique is the restructuring. This permits the company to continue operating and provide relief to creditors who are not paid. Moreover, it may be possible for the company to be shielded from individual lawsuits.

As an example, in an organizational reorganization, there is an asbestos trust fund victims can be established. The funds can be used to pay out in cash, gifts, or a combination of both. The reorganization discussed above consists of an initial funding estimate, link web site which is followed by a court-approved reorganization plan. If a reorganization is approved, a trustee is assigned. It could be an individual, a bank, or a third-party. Generally, the most effective arrangement will cover all participants.

Alongside announcing a fresh strategy for bankruptcy courts, the reorganization exposes some powerful legal tools. Hence, it's no wonder that a number of companies have filed for chapter 11 bankruptcy protection. To be safe asbestos-related companies, some had no choice but to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason is easy. Georgia-Pacific filed for an order of reorganization in order to protect itself against a rash mesothelioma-related lawsuit. It also merged all its assets into one. It has been selling its most valuable assets to get control of its financial woes.

FACT Act

Presently, there is an act in Congress known as the "Furthering Asbestos Claim Transparency Act" (FACT) which will change the way asbestos trusts function. The law will make it more difficult to submit fraudulent claims against asbestos survival rate, relevant resource site, trusts, and will grant defendants unlimited access to information in litigation.

The FACT Act requires asbestos trusts to publish a list of claimants in a public docket. They are also required to disclose the names of the claimants, their exposure history, as well as compensation amounts that claimants have received. These reports, which are able to be viewed by anyone, would help to prevent fraud.

The FACT Act would also require trusts to release other information, such as payment information 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-related businesses.

The FACT Act is a giveaway for asbestos companies with huge profits. It could also lead to a delay in the process of compensation. Additionally, it raises important privacy concerns for victims. The bill is also a complex piece of legislation.

In addition to the data that is required to be published in the FACT Act, the FACT Act also prohibits the publication of social security numbers, medical records, and other information protected by bankruptcy laws. It's also more difficult to obtain justice in courts.

The FACT Act is a red falsehood, in addition to the obvious question about what compensation victims can receive. The Environmental Working Group examined the House Judiciary committee's most notable accomplishments and found that 19 members were given corporate campaign contributions.