Asbestos Bankruptcy Trusts

Generally asbestos bankruptcy trusts are established by companies who have filed for bankruptcy. These trusts pay personal injury claims for asbestos exposure victims. At least 56 asbestos bankruptcy trusts have been established since the mid-1970s.

Armstrong World Industries Asbestos Trust

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

The company employed asbestos in a variety of products including tiles, insulation as well as vinyl flooring and tiles in its initial years. This meant that workers were exposed to the material, which can cause serious health issues such as mesothelioma and lung cancer and asbestosis.

The asbestos-containing products of Armstrong were extensively used in commercial, residential and military construction industry. Many Armstrong workers were exposed to asbestos, which resulted in asbestos-related illnesses.

Although asbestos is a mineral that occurs naturally but it is not a safe material to consume by humans. It is also believed as a fireproofing material. Companies have created trusts to pay victims for asbestos' dangers.

A trust was set up to compensate victims of Armstrong World Industries' bankruptcy. The trust paid out more than 200,000 claims during the first two years. The total amount of compensation was greater than $2 billion.

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

According to the Asbestos Victims Compensation Trust, the company is estimated to be accountable for more than $1 billion in personal injury claims. The trust has more that $2 billion in reserves to pay claims.

Celotex Asbestos Trust

During the early to mid 1980s, Celotex Corporation, a manufacturer and distributor of building products, was confronted with a flood of lawsuits alleging asbestos-related property damage. These claims, along with others claimed billions of dollars in damages.

Celotex filed for bankruptcy protection in 1990. The reorganization plan it was part of created the Asbestos Settlement Trust to process asbestos related claims. The Trust filed an action in the United States District Court for the Middle District of Florida. It was represented by lawyers from Saiber L.L.C.

In the course of the investigation the trust sought to secure coverage under two additional general liability insurance policies. One policy provided five million dollars of coverage while the other provided 6.6 million. Jim Walter Corporation was also asked to provide coverage. It could not find any evidence that suggested that the trust was required by law to give notice to excess insurances.

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

Celotex had less that $7 million of primary coverage when it filed, but was confident that future asbestos litigation could affect its excess insurance. The company actually anticipated the need for multiple layers of excess insurance coverage. Despite this the bankruptcy court ruled that there was no evidence that proved Celotex gave reasonable notice to its excess insurance carriers.

The Celotex Asbestos Settlement Trust is an extremely complex process. It is responsible for settling claims against Philip Carey (formerly Canadian Mine) as well as providing treatment for asbestos-related illnesses.

The process can be difficult. The trust offers a user-friendly claim management tool, as well as an interactive website. The website also has a section dedicated to claim deficiencies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. The company declared bankruptcy in 2010, however. The reason behind the filing was to resolve asbestos lawsuits. Christy Refractories' insurers have been paying asbestos claims around $1 million per month for the past three years.

Since the 1980s, asbestos trust funds have paid more than 20 billion dollars. These funds can be used to pay for lost income as well as therapy costs. 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 product range included insulation and refractory materials, which included asbestos. The company filed for Chapter 11 bankruptcy in 2002 however it was revived in the year 2006. It has dealt with more than 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 also employed asbestos in its products.

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

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

The Western MacArthur Asbestos Settlement Trust has paid out over $500 million in claims. It also manages 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 Asbestos Personal Injury Trust was 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 ailments that resulted from asbestos exposure.

The trust was founded in Pennsylvania with 400 million dollars in assets. It made payments to claimants in the millions after its creation.

The trust is currently located in Southfield, MI. It is made up of three separate funds. Each one is devoted to settling claims against asbestos product entities of the Federal-Mogul group.

The main goal of the trust is to offer financial compensation for westerville asbestos-related diseases within the approximately 2,000 professions that employ asbestos. The trust has already paid out more than $1 billion in claims.

The US Bankruptcy Court estimated the net value of asbestos liabilities to be in the range of $9 billion. It also concluded that it was in the best interests of creditors to maximize the value of assets they have available.

The royse city 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 created 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 Abilene Mesothelioma lawsuits through reorganization

Every year thousands of asbestos lawsuits are settled thanks to the bankruptcy courts. As such, large corporations are using new methods to gain access to the judicial system. Reorganization is one of these strategies. This permits the company to continue to operate and offer relief to unpaid creditors. It could also be possible to protect the company from individual lawsuits.

For example, a trust fund may be established for asbestos-related victims as part of a restructuring. The funds can be used to pay out in cash, in gifts, or a combination of both. The above reorganization consists of a first funding quote that is followed by a court-approved plan. A trustee is appointed after a reorganization has been approved. This could be an individual, a bank or a third party. The best way to organize will benefit everyone who are involved.

The reorganization does not just announce a new strategy to bankruptcy courts, but also offers powerful legal tools. Therefore, it's not surprising that a large number of businesses have filed for chapter 11 bankruptcy protection. To ensure that they are protected, some page asbestos companies 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. Georgia-Pacific applied for an order of reorganization to safeguard itself from a surge of mesothelioma suit. It also rolled all its assets into one. It has been selling its most valuable assets to take control of its financial woes.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it more difficult to claim fraudulently against asbestos trusts. The legislation will make it more difficult to make fraudulent claims against asbestos trusts, and will give defendants unfettered access to information during litigation.

The FACT Act requires that asbestos trusts release a list of plaintiffs on a public docket of court. They must also provide the names, exposure history, and compensation amounts paid these claimants. These reports, which are publicly available, could prevent fraud from taking place.

The FACT Act would also require trusts to divulge any other information, including payment details even if they are part of confidential settlements. In fact the report on 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 del rio asbestos-related companies.

The FACT Act is a giveaway to large asbestos companies. It would also cause 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 published In addition to the information that must be published, the FACT Act also prohibits the publication of social security numbers, medical records, and other information protected by bankruptcy laws. It's also more difficult to get justice in courtrooms.

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