Asbestos Bankruptcy Trusts

Generally asbestos bankruptcy trusts are created by companies who have filed for bankruptcy. These trusts then pay personal injury claims for those who were exposed to asbestos. Since the mid-1970s at least 56 asbestos bankruptcy trusts have been established.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in 1860 in Pittsburgh. It is the largest wine bottle cork producer in the world. It has over three thousand employees and has 26 manufacturing facilities around the world.

During the early years the company was using asbestos in a variety of products, including tiles, insulation and vinyl flooring. Workers were exposed to Asbestos Law Firm Albemarle, which could cause serious health issues such as mesothelioma and lung cancer.

The company’s asbestos-containing materials were extensively used in residential, commercial and military construction sectors. As a result of the exposure, thousands of Armstrong workers developed asbestos-related illnesses.

Although asbestos is a natural-occurring mineral, it isn’t suitable for human consumption. It is also called a fireproofing substance. Because of the dangers associated with asbestos, companies have established trusts to pay victims.

In the aftermath of the bankruptcy of Armstrong World Industries, a trust was established to compensate the people who were affected by Armstrong World Industries’ products. The trust paid out more than 200,000 claims during the first two years. The total amount of compensation was more than $2 billion.

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

According to the Asbestos Victims Compensation Trust the company was accountable for more that $1 billion in personal injuries claims. The trust has more than $2 billion in reserve to pay for claims.

Celotex newport beach asbestos law firm Trust

In the early to mid 1980s, Celotex Corporation, a manufacturer and sagatenergy.kz distributor of building materials, was hit with an avalanche of lawsuits claiming asbestos-related property damage. These claims, along with others claims, demanded billions of dollars in damages.

In 1990, Celotex filed for bankruptcy protection. The reorganization plan that it had created was a result of the creation of 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. It was represented by attorneys from Saiber L.L.C.

The trust sought coverage under two policies of excess comprehensive general liability insurance. One policy offered coverage for five million dollars. While the second policy provided coverage for 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 legally required to provide notice to those who had additional insurances.

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

Celotex had less than $7 million of primary coverage at the time of filing, but was confident that future asbestos litigation could affect its excess insurance. The company actually anticipated the need for multiple layers of additional insurance coverage. The bankruptcy court was unable to find any evidence that Celotex provided reasonable notice to its insurers who were in excess.

The Celotex asbestos lawsuit sevierville Settlement Trust is an extremely complex process. In addition to providing claims for asbestos-related illnesses it also is responsible for making payments to Philip Carey (formerly Canadian Mine).

The process can be complicated. Luckily, the trust has an easy to use claims management tool and an interactive website. There is also a page on the site that addresses claims-related deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. However, in the early part of 2010 the company filed for bankruptcy. The filing was to settle asbestos lawsuits. Christy Refractories’ insurers have been paying asbestos claims around $1 million per month since then.

There have been more than 20 billion dollars distributed from asbestos trust funds in the 1980s and into the 1990s. These funds can be used to pay for lost income and therapy costs. Some of these funds include 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 included asbestos. The company filed for Chapter 11 bankruptcy in 2002, but later reemerged in 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 employed 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 extraction industry.

The Prudential Lines Trust was subject to hundreds of lawsuits, mass tort actions, and a twenty 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 includes the Pacific Insulation Company as well as the Thorpe Insulation Company.

Federal Mogul’s Asbestos PI Trust

Federal Mogul’s valdosta asbestos lawyer Personal Injury Trust was originally filed in 2007. It is a trust which 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 illnesses that were caused by asbestos exposure.

The trust was initially established in Pennsylvania with 400 million dollars in assets. It paid millions to claimants after it was established.

The trust is now located in Southfield, MI. It is composed of three separate money coffers. Each is dedicated to the management of claims against entities who produce asbestos products for Federal-Mogul.

The trust’s primary goal is to provide financial compensation for asbestos-related illnesses in the nearly 2,000 occupations which use asbestos. The trust has paid more than $1 billion in claims.

The US Bankruptcy Court figured that the asbestos liabilities’ net value was about $9 billion. It also concluded that it was in the best interests of the 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.

The trust established Trust Distribution Procedures, or TDPs, to handle claims. These TDPs are designed to be fair to all claimants. They are based upon historical values for substantially identical claims in the US tort system.

Asbestos companies are protected against mesothelioma lawsuits if they are reorganized

Every year thousands of asbestos lawsuits are settled through the bankruptcy courts. As a result, big corporations are using new methods to gain access to the judicial system. Reorganization is one strategy. 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 protected from lawsuits filed by individuals.

For example the trust fund could be set up for asbestos victims as part of a restructuring. These funds can pay out in the form of gifts, cash or a combination of both. The reorganization mentioned above is comprised of a first funding quote, followed by an approved plan by the court. A trustee is appointed once the reorganization was approved. This could be an individual, a bank or a third party. Generally, the most effective reorganization will provide for all parties involved.

The reorganization doesn’t just announce an innovative approach to bankruptcy courts, but also unveils powerful legal tools. It’s not surprising that a lot of companies have applied for chapter 11 bankruptcy protection. To ensure that they are protected asbestos-related companies, some had no choice but to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example had filed chapter 7 bankruptcy in 2009. The reason is simple. To safeguard itself from a rash of mesothelioma claims, Georgia-Pacific filed for a restructuring and rolled over all of its assets into one. It has been selling its most valuable assets to take control of its financial problems.

FACT Act

Currently, there is an act in Congress that is referred to as the “Furthering Asbestos Claim Transparency Act” (FACT) that will change how asbestos trusts function. The law will make it more difficult to submit fraudulent claims against asbestos trusts and will give defendants access to all information they need in litigation.

The FACT Act requires that asbestos trusts post a list of claimants in a public court docket. They are also required to publish the names of those who have been exposed, as well as the exposure history and compensation amounts that are paid to these claimants. These reports, which are publically available, could prevent fraud from occurring.

The FACT Act would also require trusts that they disclose any other information including payment information even if they’re part of confidential settlements. The Environmental Working Group’s report on FACT Act found that 19 House Judiciary Committee members voted in favor of the bill. They also received donations from asbestos-related organizations.

The FACT Act is a giveaway to big asbestos companies. It will also result in delays in the compensation process. It also creates privacy issues for victims. The bill is also a complicated piece of legislation.

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

The FACT Act is a red untruth, aside from the obvious question about how victims could be compensated. The Environmental Working Group examined the House Judiciary committee’s most notable accomplishments and discovered that 19 members were rewarded through corporate contributions to campaigns.