Asbestos Bankruptcy Trusts

Companies that file for bankruptcy generally establish asbestos trusts 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 were set up.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1890 in Pittsburgh. It is the largest wine cork maker in the world. It employs more than 3000 people and has 26 manufacturing facilities around the world.

The company employed asbestos in a variety of products like insulation, tiles as well as vinyl flooring and tiles in its beginning years. Workers were exposed to asbestos which can lead to serious health issues like mesothelioma and lung cancer.

The company's asbestos-containing products were extensively used in commercial, residential and military construction industries. Due to the exposure many thousands of Armstrong workers developed asbestos-related diseases.

Although asbestos is a natural-occurring mineral, it isn't suitable for human consumption. It is also widely used as a material for fireproofing. Because of the risks 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. The trust was able to pay out more than 200,000 claims during the first two years. The total compensation amount was more than $2 billion.

The trust is managed by Armor TPG Holdings, a private equity firm. At the beginning of 2013, the company owned more than 25 percent of the fund.

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

Celotex Asbestos Trust

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

Celotex filed for bankruptcy protection in the year 1990. To process asbestos-related claims, the Asbestos 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.

The trust sought coverage under two policies of comprehensive excess general liability insurance. One policy provided five million dollars of coverage and the other 6.6 million. Jim Walter Corporation was also requested to provide coverage. The trust did not find any evidence to suggest that the trust was legally required to give notice to excess insurances.

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

Celotex had less than $7 million of primary coverage at the time of filing however, it believed that any future Asbestos litigation (www.jaee.Co.kr) would affect its coverage for excess. The company actually anticipated the need for multiple layers of excess insurance coverage. Despite this, the bankruptcy court found no evidence to show that Celotex provided adequate notice to its excess insurance carriers.

The Celotex Asbestos Settlement Trust is a complicated process. It is responsible for settlement of claims against Philip Carey (formerly Canadian Mine) and provides treatment for asbestos-related diseases.

The process can be difficult to understand. The trust offers a user-friendly claim management tool as well an interactive website. The website also features an area dedicated to claims deficiencies.

Christy Refractories asbestos commercial Trust

Originally, Christy Refractories' insurance pool was $45 million. The company filed for bankruptcy in 2010, however. The reason for the bankruptcy filing was to resolve asbestos lawsuits. Christy Refractories' insurers have been settlement asbestos claims for about $1 million per month since.

Over 20 billion dollars released from asbestos trust funds since the end of the 1980s. These funds can be used to pay for the cost of therapy and lost income. The funds that are included in these are the Western MacArthur Trust, the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

The Thorpe Company's offerings included refractory and insulation materials, which included asbestos. In 2002 the company filed for Chapter 11 bankruptcy. However, it was reemerged in the year 2006. It handled over 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 extraction industry.

The Prudential Lines Trust faced hundreds of lawsuits as well as mass tort cases and a 20-year limit on paying out the funds.

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

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 created in 2007. It is a trust that assists those who have been exposed to asbestos. The Federal Mogul Asbestos PI Trust is a bankruptcy trust that provides financial compensation to victims of ailments that resulted from asbestos exposure.

The initial assets of $400 million were used to create the trust in Pennsylvania. Following the trust's creation, it paid out millions to the beneficiaries.

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

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

The US Bankruptcy Court estimated the asbestos liabilities' total value to be around $9 billion. It was also determined that creditors should maximize the value of assets.

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 has established Trust Distribution Procedures, or TDPs to deal with claims. These TDPs are designed to be fair to all claimants. They are based upon historical data for claims that are substantially comparable 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 employing new strategies to gain access to the judicial system. One such technique is the reorganization. This allows the company's activities to continue and provides relief to creditors who aren't paid. Additionally, it could be possible for the company to be protected from lawsuits filed by individuals.

For instance it is possible for a trust fund to be established for asbestos-related victims as part of a reorganization. These funds may pay out in the form of cash, gifts or any combination of the two. The reorganization described above is an initial funding quotation that is followed by a court-approved reorganization plan. A trustee is appointed once the reorganization was approved. This could be an individual or a bank, or a third party. Generallyspeaking, the most efficient arrangement will cover all parties involved.

The reorganization doesn't just announce the new approach to bankruptcy courts but also reveals some powerful legal tools. It's not shocking that a number of companies have filed for chapter 11 bankruptcy protection. To ensure that they are protected asbestos-related companies, some had no other choice other than to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example had filed chapter 7 bankruptcy in 2009. The reason is simple. Georgia-Pacific applied for an order of reorganization to defend itself from a flood of mesothelioma lawsuit. It also merged all its assets into one. It has been selling its most valuable assets to get rid of its financial woes.

FACT Act

In the present, there's an act in Congress, called the "Furthering Asbestos Claim Transparency Act" (FACT) which will change the way asbestos trusts function. The legislation will make it more difficult to file fraudulent claims against asbestos trusts, and will grant defendants access to information during litigation.

The FACT Act requires that asbestos trusts release a list of claimants in a public court docket. They are also required to provide names as well as exposure histories and compensation amounts paid to the claimants. These reports, which are publicly accessible, will stop fraud from taking place.

The FACT Act would also require trusts to divulge other information, including payment details 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 contributions from asbestos-related interests.

The FACT Act is a giveaway to large asbestos companies. It can also delay the process of compensation. It also creates privacy issues for ttlink.com victims. Additionally the bill is a terribly complicated piece of legislation.

The FACT Act prohibits publication of information in addition to information that must be published. It also prohibits the disclosure of social security numbers, medical records or other information protected under bankruptcy laws. The law also makes it more difficult to seek justice in the courtroom.

In addition to the obvious issue of how a victim's compensation may be affected by the FACT Act is a red herring. The Environmental Working Group examined the House Judiciary Committee's greatest accomplishments and found that 19 members were rewarded through corporate campaign contributions.