Asbestos Bankruptcy Trusts

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

Armstrong World Industries Asbestos Trust

In 1860, when it was first established in Pittsburgh, PA, Armstrong World Industries is the world's largest wine cork manufacturer. It has over three thousand employees and has 26 manufacturing facilities all over the world.

During the early years, the company used asbestos in a range of products including tiles, insulation, and vinyl flooring. This meant that workers were exposed to asbestos material, which can lead to serious health problems such as mesothelioma and lung cancer and asbestosis.

The asbestos-containing products of Armstrong were extensively employed in commercial, residential as well as military construction industries. Due to the exposure to asbestos, thousands of Armstrong workers were afflicted with asbestos-related illnesses.

While asbestos is a naturally occurring mineral, it is not safe for human consumption. It is also called a fireproofing substance. Companies have created trusts in order to pay victims for asbestos lawyers' dangers.

In the wake of the bankruptcy of Armstrong World Industries, a trust was established to compensate people who were affected by the company's products. In the first two years, the trust paid 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. At the beginning of 2013 the company held more than 25 percent of the fund.

According to the Asbestos Treatment (Http://Www.Imckr.Com/G5/Bbs/Board.Php?Bo_Table=My6Of333Xm&Wr_Id=27585) Victims Compensation Trust, the company is estimated to have been responsible for more that $1 billion in personal injury claims. The trust has more than $2 billion in reserve to pay claims.

Celotex Asbestos Trust

In the early to mid 1980s, Celotex Corporation, a manufacturer and distributor of building materials, faced a flood of lawsuits alleging asbestos related property damage. These claims, as well as others, demanded billions in damages.

In 1990, Celotex filed for bankruptcy protection. The plan of reorganization led to the creation of the Asbestos Settlement Trust to process these asbestos related claims. 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 course of the investigation the trust sought coverage under two general liability insurance policies that were comprehensive. One policy offered five million dollars of insurance, while the other offered 6.6 million. The trust also asked for coverage from Jim Walter Corporation. It did not find any evidence that showed the trust was legally required to give notice of excess insurances.

The Celotex Asbestos Trust filed proofs of bodily injury claims on December 31 of 2004. The trust also filed a motion seeking to overturn the special master's decision.

Celotex had less than $7 million of primary coverage at the time of filing, but was of the opinion that asbestos litigation would affect its coverage for excess. Celotex actually anticipated the need for several layers of excess insurance coverage. The bankruptcy court was unable to find any evidence to suggest that Celotex gave adequate notice to its excess insurers.

The Celotex Asbestos Settlement Trust is complex. In addition to providing claims for asbestos-related illnesses, it also has the responsibility of making payments to Philip Carey (formerly Canadian Mine).

It can be confusing. The trust offers a simple claim management tool as well an interactive website. There is also a page on the website to address claims-related deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. The company declared bankruptcy in 2010, however. The filing was made to settle asbestos lawsuits. Christy Refractories' insurers have been in the process of settling asbestos claims at a rate of $1 million per month since the time of filing.

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 costs. 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 products included insulation and refractory materials, which included asbestos. The company filed for Chapter 11 bankruptcy in 2002 however it was revived in the year 2006. It has dealt with 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 used asbestos in their products. The United States Gypsum Company also utilized asbestos in its products.

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

The Prudential Lines Trust was subject to hundreds of lawsuits, mass tort actions, and a 20 year limit on the disbursement of funds.

The Western MacArthur Asbestos Settlement Trust has paid out over $500 million in claims. It also handles Yarway claims.

The Thorpe Insulation Settlement Trust covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

Originally filed in 2007, Federal Mogul's Asbestos Personal Injury Trust was originally filed in 2007. It is an insurance trust designed to aid those suffering from asbestos exposure. The Federal Mogul Asbestos PI Trust is a bankruptcy trust that provides financial compensation for ailments that resulted from asbestos exposure.

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

The trust is now located in Southfield, MI. It is comprised of three separate coffers of cash. Each one is dedicated to the handling of claims against entities that make asbestos products for Federal-Mogul.

The primary purpose of the trust is to provide financial compensation for asbestos causes-related ailments 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 figured that the asbestos liabilities' net value was around $9 billion. It also found that it was in the best interests 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.

To deal with claims, the trust created Trust Distribution Procedures (or TDPs). These TDPs are designed to ensure that all claimants are treated equally. They are based on historical precedents for substantially identical claims in the US tort system.

Reorganization protects asbestos companies against mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled through the bankruptcy courts. Large corporations are now using new strategies to gain access to the legal system. Reorganization is one of these strategies. This allows the company's activities to continue and provides relief to those who have not paid their creditors. Furthermore, it is possible for the company to be protected from lawsuits by individual creditors.

As an example, in an organization reorganization, an asbestos symptoms trust fund victims might be set up. These funds can be distributed in the form of gifts, cash, or some combination thereof. The reorganization described above consists of an initial funding estimate and an approved plan by the court. A trustee is appointed after the reorganization has been approved. This may be an individual or a bank or a third-party. The best way to organize will benefit all involved.

Apart from announcing a new strategy for bankruptcy courts, the reorganization provides some powerful legal tools. It's not surprising that many companies have applied for chapter 11 bankruptcy protection. Certain asbestos companies were required to declare bankruptcy under chapter 7 in order to protect themselves. For example, Georgia-Pacific LLC filed for 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 rolled all its assets into one. To get a handle on its financial problems it has been selling its most important assets.

FACT Act

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

The FACT Act requires that asbestos trusts publish a list listing claimants in a public court docket. They are also required to publish the names, exposure histories, and compensation amounts paid to the claimants. These reports, Get More Information which are publicly accessible, will stop fraud from happening.

The FACT Act would also require trusts to share any other information such as payment details, even if they are 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-related interests.

The FACT Act is a giveaway to asbestos diagnosis-related companies with large profits. It will also result in a delay in the process of compensation. Additionally, it raises serious privacy issues for victims. The bill is also a complex piece of legislation.

The FACT Act prohibits publication of information in addition to information that has to be published. It also prohibits the disclosure of social security numbers, medical records or other information that is protected by bankruptcy laws. The act also makes it harder to obtain justice in the courtroom.

Aside from the obvious question of how a victim's compensation might be affected, the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee's most notable achievements and found that 19 members were given campaign contributions from corporate interests.