Asbestos Bankruptcy Trusts

Companies who file for bankruptcy typically create asbestos bankruptcy trusts. They pay personal injury claims for asbestos exposure victims. At least 56 asbestos bankruptcy trusts have been set up since the mid-1970s.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1890 in Pittsburgh. It is the largest wine cork producer in the world. It has more than 3000 employees and has 26 manufacturing facilities all over the world.

The company employed asbestos in a variety of items, including insulation, tiles, vinyl flooring, and tiles during its early days. The result was that workers were exposed to the substance, which could cause serious health problems such as mesothelioma or lung cancer and asbestosis.

The company's asbestos-containing products were widely used in the commercial, residential, and military construction industries. As a result of this exposure many thousands of Armstrong employees were affected by asbestos-related illnesses.

While asbestos is a naturally occurring mineral, it is not safe for human consumption. It is also believed as a fireproofing material. Because of the risks associated with asbestos, businesses have established trusts to compensate victims.

A trust was created to pay the victims of Armstrong World Industries' bankruptcy. In the initial two years, the trust paid out more than 200 thousand claims. The total amount of compensation was more than $2B.

Armor TPG Holdings, which is a private equity business, owns 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 accountable for more than $1 billion in personal injuries claims. The trust has more than $2 billion of reserves to pay for claims.

Celotex Asbestos Trust

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

In 1990, Celotex filed for bankruptcy protection. Its reorganization plan established the Asbestos Settlement Trust to process asbestos-related claims. The Trust filed a claim in 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 additional comprehensive general liability insurance policies. One policy provided coverage of five million dollars, while the other policy offered coverage of 6.6 million. The trust also asked for coverage from Jim Walter Corporation. The trust did not find any evidence to suggest that the trust was required by law to notify the excess insurances.

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

Celotex had less than $7 million in primary coverage when it filed, but was of the opinion that future asbestos litigation would affect its excess coverage. Celotex actually anticipated the need for multiple layers of excess insurance coverage. However the bankruptcy court found no evidence to establish that Celotex provided reasonable notice to its insurance providers who had excess coverage.

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

It can be difficult to understand. Fortunately, the trust offers an easy to use claims management tool and an interactive web site. The site also has an entire page dedicated to claims deficiencies.

Christy Refractories Asbestos Trust

At first, Christy Refractories' insurance pool was $45 million. The company was declared bankrupt in 2010 however. The filing was made to settle asbestos lawsuits. Christy Refractories' insurers have been paying asbestos claims around $1 million per month since then.

There have been over 20 billion dollars released from asbestos trust funds since the end of the 1980s. 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 Asbestos Trust.

The Thorpe Company's products comprised insulation and refractory materials, which contained asbestos. The company filed for Chapter 11 bankruptcy in 2002, but later reemerged in the year 2006. It handled over 4,500 claims.

The Western MacArthur Trust paid out more than $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all employed asbestos in their products. The United States Gypsum Company used asbestos commercial in its products.

The Utex Industries, Inc. Successor Trust has paid over 2,000 asbestos claims. It supplied sealing products to the oil industry.

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

The Western MacArthur Asbestos Settlement Trust has paid more than $500 million in claims. It also manages claims against Yarway.

The Thorpe Insulation Settlement Trust includes the Pacific Insulation Company as well as 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 which assists those who have been exposed to asbestos. Federal Mogul asbestos treatment (Visit Webpage) PI Trust, a bankruptcy trust, offers financial compensation for asbestos-related illnesses.

The trust was established in Pennsylvania with 400 million dollars in assets. Following the trust's creation it made payments of millions to those who claimed.

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

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

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

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 deal with claims, the trust established Trust Distribution Procedures (or TDPs). These TDPs are designed to be fair to all claimants. They are based on the previous values for nearly identical claims in the US tort system.

Reorganization of asbestos companies helps protect them from mesothelioma lawsuits

Many asbestos lawsuits are settling every year, due in part to bankruptcy courts. Large corporations are now using new strategies to gain access to the legal system. One of these methods is restructuring. This allows the business's operations to continue and also provides relief to unpaid creditors. In addition, it could be possible for the company to be shielded from lawsuits brought by individuals.

As an example, during a reorganization, an asbestos trust fund victims could be created. These funds can be used to pay out in cash, gifts or a combination of both. The above reorganization consists of a first funding quote that is followed by an approved plan of the court. If a reorganization plan is approved and a trustee is designated. This could be a person or a bank or an outside party. A successful reorganization will benefit everyone affected.

The reorganization not only announces the new approach to bankruptcy courts, but also unveils powerful legal tools. Therefore, it's not surprising that many companies have filed for chapter 11 bankruptcy protection. Some asbestos 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 straightforward. Georgia-Pacific has filed for an order of reorganization in order to defend itself from a flood of mesothelioma lawsuits. It also merged all its assets into one. To alleviate its financial woes it has been selling off its most important assets.

FACT Act

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

The FACT Act requires that asbestos trusts post a list of the claimants on a public court docket. They are also required to disclose the names as well as the history of exposure and compensation amounts that claimants have received. These reports, which are able to be seen by the public, could assist in preventing fraud.

The FACT Act would also require trusts to share any other information including payment information even if they are 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-related businesses.

The FACT Act is a giveaway to large asbestos lawyers companies. It can also delay the process of compensation. Additionally, it raises significant privacy issues for victims. The bill is also a complex piece of legislation.

In addition to the information that has to be published, the FACT Act also prohibits the publication of social security numbers, medical records as well as other information protected under bankruptcy laws. It's also more difficult to get justice in courtrooms.

Apart from the obvious question of how compensation for victims may be affected by the FACT Act is a red herring. The Environmental Working Group examined the House Judiciary Committee's most noteworthy accomplishments and discovered that 19 members were rewarded with corporate campaign contributions.