Asbestos Bankruptcy Trusts

Typically asbestos bankruptcy trusts are set up by companies that have filed for bankruptcy. Trusts are then able to pay personal injury claims of those who were exposed to asbestos. At least 56 asbestos bankruptcy trusts have been created since the mid-1970s.

Armstrong World Industries Asbestos Trust

The company was founded in 1859 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork maker. It has more than three thousand employees and operates 26 manufacturing facilities across the globe.

In the beginning the company was using asbestos life expectancy in a variety products including insulation, tiles and vinyl flooring. Workers were exposed to asbestos, which could cause serious health problems like mesothelioma and lung cancer.

The asbestos-containing products of the company were extensively employed in commercial, residential and military construction industries. As a result of the exposure many thousands of Armstrong workers developed asbestos-related illnesses.

Although asbestos is a naturally occurring mineral, it is not safe for human consumption. It is also known to be a material that can prevent fire. Companies have set up trusts to pay victims for asbestos' dangers.

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

Armor TPG Holdings, which is a private equity firm, owns the trust. The company owned over 25% of the fund at the beginning of 2013.

According to the Asbestos Victims Compensation Trust the company was responsible for more that $1 billion in personal injury claims. The trust has more that $2 billion in reserves to pay 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 claiming asbestos-related damage. These claims, along with others, demanded 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 a claim at the United States District Court for Middle District of Florida. Saiber L.L.C. represented the Trust.

The trust sought coverage under two policies of comprehensive excess general liability insurance. One policy provided coverage of five million dollars. While the other provided coverage for 6.6 million. Jim Walter Corporation was also asked to provide coverage. It did not discover 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 31st in 2004. The trust also filed a motion seeking to overturn the special master's decision.

Celotex had less that $7 million in primary coverage at the time of filing, but they believed that asbestos litigation in the future would impact its excess coverage. In reality, the company foresaw the need for numerous layers of excess insurance coverage. However the bankruptcy court ruled that there was no evidence to show that Celotex provided reasonable notice to its insurance providers who had excess coverage.

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

It can be difficult to understand. The trust offers a user-friendly claim management tool and an interactive website. The site also has an entire page dedicated to claims inaccuracies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. The company filed for bankruptcy in 2010, however. The filing was made to settle asbestos lawsuits. Christy Refractories' insurers have been settlement asbestos claims for about $1 million per month since.

Since the 1980s asbestos trust funds have paid out more than 20 billion dollars. These funds can be used to cover lost income and therapy expenses. Among these funds are the Western MacArthur Trust, 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 contained asbestos (click the following webpage). 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 has paid out over $1.1 billion in claims. The Synkoloid Company, more.. Abex Corporation, and Pneumo Corporation all used asbestos in their products. The United States Gypsum Company also employed asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid more than 2,000 asbestos claims. It also supplied sealing materials to the oil 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 more than $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

Federal Mogul's Asbestos Personal Injury Trust was first filed in 2007. It is a trust which assists those who have been exposed to asbestos. Federal Mogul Asbestos PI Trust, a bankruptcy trust, provides financial compensation for asbestos-related illnesses.

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

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

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

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

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 established Trust Distribution Procedures (or TDPs). These TDPs are designed to treat all claimants equally. They are based on the historical precedents for claims that are substantially similar in the US tort system.

Asbestos-related companies are protected from mesothelioma lawsuits through reorganization

Thousands of asbestos lawsuits are settling every year, due in part to the bankruptcy courts. As such, large corporations are employing new strategies to access the judicial system. One of these methods is reorganization. This allows the business's operations to continue and gives relief to creditors who are not paid. Moreover, it may be possible for the company to be protected from lawsuits by individual creditors.

For instance the trust fund could be set up for asbestos victims as part of a reorganization. These funds can be used to pay in cash, gifts, or the combination of both. The reorganization discussed above consists of a first funding quote and a court-approved plan. Once a reorganization has been approved and a trustee is appointed. This could be an individual or bank, or even a third party. The most effective reorganization will benefit everyone who are involved.

Apart from announcing a new strategy for bankruptcy courts, the reorganization provides some powerful legal tools. It's not a surprise that many businesses have filed for chapter 11 bankruptcy protection. To ensure that they are protected asbestos-related companies, some had no choice to file for chapter 7 bankruptcy. For instance, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason is easy. To avoid mesothelioma lawsuits, Georgia-Pacific filed for a reorganization and rolled all its assets into one. It has been selling its most valuable assets to get control of its financial problems.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it harder to file fraudulent claims against asbestos trusts. The legislation will make it harder to submit fraudulent claims against asbestos trusts, and will give defendants full access to information in litigation.

The FACT Act requires asbestos trusts to publish the list of claimants in an open 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 can be seen by the public, could help to prevent fraud.

The FACT Act would also require trusts to share any other information such as payment details even if they're 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 companies.

The FACT Act is a giveaway to asbestos-related companies with large scales. It also causes delays in the compensation process. It also raises privacy concerns for victims. The bill is also a complicated piece of legislation.

In addition to the information that is required to be published in the FACT Act, the FACT Act also prohibits the release of social security numbers, medical records, as well as other information protected under bankruptcy laws. The act also makes it harder to get justice in the courtroom.

In addition to the obvious issue of how a victim's compensation could be affected, the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary committee's most significant accomplishments and found that 19 members were rewarded with campaign contributions from corporate interests.