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Asbestos Bankruptcy Trusts

Typically asbestos compensation bankruptcy trusts are typically established by companies who have filed for bankruptcy. They pay personal injury claims made by asbestos exposure victims. 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 cork manufacturer. It has more than three thousand employees and operates 26 manufacturing facilities worldwide.

In the beginning the company employed asbestos in a range of products, including insulation, tiles and vinyl flooring. The result was that employees were exposed to the substance, which can lead to serious health problems such as mesothelioma or lung cancer and asbestosis.

The asbestos-containing products of Armstrong were extensively used in commercial, residential as well as military construction industries. As a result of this exposure many thousands of Armstrong employees were affected by asbestos-related illnesses.

Although asbestos is a natural-occurring mineral, it is not suitable for human consumption. It is also known as a fireproofing material. Companies have created trusts in order to compensate victims due to asbestos' dangers.

A trust was created to pay the victims of Armstrong World Industries' bankruptcy. The trust settled more than 200,000 claims in the first two years. The total amount of compensation was more than $2 billion.

Armor TPG Holdings, which is a private equity firm, owns the trust. The company owned more than 25 percent 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 injuries claims. The trust has more than $2 billion of reserves to pay for claims.

Celotex Asbestos Trust

In the mid to late 1980s, Celotex Corporation, a manufacturer and distributor of building materials, had to contend with numerous lawsuits alleging asbestos-related property damage. These claims, among others were a flurry of billions of dollars in damages.

Celotex filed for bankruptcy protection in 1990. The reorganization plan that it had created established the Asbestos Settlement Trust to process asbestos-related claims. The Trust filed a claim at the United States District Court for Middle District of Florida. It was represented by attorneys from Saiber L.L.C.

The trust sought protection under two policies of comprehensive excess general liability insurance. One policy provided coverage for five million dollars, while the other provided coverage for 6.6 million. Jim Walter Corporation was also requested to provide coverage. However, the trust did not find evidence that the trust was required to send notice to the excess insurers.

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

Celotex had less that $7 million of primary coverage when it filedfor bankruptcy, but believed future asbestos litigation would impact its excess coverage. The company actually anticipated the need for multiple layers of additional insurance coverage. The bankruptcy court didn't find any evidence to suggest that Celotex provided a adequate notice to its excess insurers.

The Celotex asbestos lawsuit (Chips blog article) Settlement Trust is an intricate process. In addition to settling claims for asbestos symptoms-related illnesses it also is responsible for paying out claims against Philip Carey (formerly Canadian Mine).

It can be difficult to understand. Luckily, the trust has a user-friendly claims management tool and an interactive web site. A page is also available on the website to address claims deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. The company filed for bankruptcy in 2010 however. The reason for filing was to sort out asbestos lawsuits. Christy Refractories' insurers have been paying asbestos claims around $1 million per month since the time of filing.

There have been more than 20 billion dollars released from asbestos trust funds in the 1980s and into the 1990s. These funds can cover the cost of therapy and lost income. 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.

Products of the Thorpe Company included insulation and refractory materials. Asbestos was also found in their products. In 2002 the company filed for Chapter 11 bankruptcy. However it was reinstated in the year 2006. It has dealt with more than 4,500 claims.

The Western MacArthur Trust has 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 used asbestos in its products.

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

The Prudential Lines Trust was subject to hundreds of lawsuits, massive tort actions and a 20 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 covers the Pacific Insulation Company and the Thorpe Insulation Company.

Federal Mogul's Asbestos PI Trust

In 2007, the trust was originally filed. Federal Mogul's Asbestos Personal Injury Trust was originally filed in 2007. It is an trust designed to help victims of asbestos exposure. Federal Mogul Asbestos PI Trust is a bankruptcy trust that offers financial compensation to asbestos-related illnesses.

The trust was founded in Pennsylvania with 400 million dollars of assets. After its creation, it paid out millions to those who claimed.

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

The primary objective of the trust is to pay financial compensation for asbestos-related diseases among the roughly 2,000 professions that utilize asbestos. The trust has already paid more that $1 billion in claims.

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

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.

The trust has established Trust Distribution Procedures, or TDPs to manage claims. These TDPs are designed to be fair to all claimants. They are based on the past precedents for nearly identical claims in the US tort system.

Reorganization helps asbestos companies protect themselves from mesothelioma lawsuits

Thousands of asbestos lawsuits are settled every year, thanks in part to bankruptcy courts. As a result, big corporations are using new methods to access the judicial system. Reorganization is a common strategy. This allows the company to continue to operate and offer relief to creditors who are not paid. It may also be possible to shield the company from lawsuits brought by individuals.

As an example, in a reorganization, a trust fund for asbestos victims may be established. These funds can pay out in the form of cash, gifts, or some combination thereof. The reorganization discussed above consists of an initial funding estimate, which is followed by a court-approved reorganization plan. A trustee is appointed after the reorganization was approved. This could be an individual or bank, or even a third party. A successful reorganization will benefit everyone affected.

The reorganization announcement not only reveals the new approach to bankruptcy courts but also reveals some powerful legal tools. It's not surprising that a lot of companies have filed for chapter 11 bankruptcy protection. To be on the safe side asbestos-related companies, some had no choice but to file for chapter 7 bankruptcy. Georgia-Pacific LLC, for example was the first to file chapter 7 bankruptcy in 2009. The reason is straightforward. To safeguard itself from mesothelioma cases that have been rife, Georgia-Pacific filed for a restructuring and rolled all its assets into one. To tackle its financial woes, 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 submit fraudulent claims against asbestos trusts, and will grant defendants access to all information they need in litigation.

The FACT Act requires asbestos trusts to publish the names of claimants in an open court docket. They are also required to release the names, asbestos Lawsuit exposure histories, and asbestos Lawsuit compensation amounts that are paid to the claimants. These reports, which are able to be seen by the public, could help prevent fraud.

The FACT Act would also require trusts to disclose other information, such as payment information 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 businesses.

The FACT Act is a giveaway to large asbestos case companies. It also causes delays in the process of compensation. It also raises privacy concerns for victims. In addition the bill is an overly complicated piece of legislation.

The FACT Act prohibits publication of information in addition to the information that must be made public. It also prohibits release of social security numbers, medical records or other information that is protected under bankruptcy laws. The act also makes it more difficult for people to obtain justice in the courtroom.

The FACT Act is a red herring, aside from the obvious question of what compensation victims can receive. The Environmental Working Group studied the House Judiciary Committee's most notable accomplishments and discovered that 19 members were awarded campaign contributions from corporations.