Asbestos Bankruptcy Trusts

Typically asbestos bankruptcy trusts are set up by companies that have filed for bankruptcy. These trusts then cover personal injury claims for those who were exposed to asbestos. In the mid-1970s, at least 56 asbestos bankruptcy trusts were created.

Armstrong World Industries Asbestos Trust

Originally founded in 1860 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork producer. It employs more than 3000 workers and has 26 manufacturing facilities all over the world.

During the early years, the company used napa asbestos lawyer in a range of products such as insulation, tiles, and vinyl flooring. This meant that workers were exposed substance, which could cause serious health problems such as mesothelioma or lung cancer and asbestosis.

The asbestos-containing products of the company were extensively employed in commercial, residential as well as the military construction industries. Due to the exposure hundreds of Armstrong workers were afflicted with asbestos-related diseases.

Although asbestos is a naturally-occurring mineral, it is not suitable for human consumption. It is also called a fireproofing substance. Due to the dangers associated with asbestos, businesses have established trusts to compensate victims.

A trust was set up to compensate victims of Armstrong World Industries' bankruptcy. In the initial two years, the trust paid more than 200 thousand claims. The total amount of compensation was more than $2B.

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

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

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. During the 1980s, Celotex Corporation was hit with a flood of lawsuits claiming providence asbestos lawsuit-related property damage. These claims, as well as others, demanded billions of dollars in damages.

In 1990, Celotex filed for bankruptcy protection. Its reorganization plan 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 process the trust sought protection under two excess general liability insurance policies that were comprehensive. One policy offered five million dollars of insurance, while the other offered 6.6 million. Jim Walter Corporation was also asked to provide coverage. It could not find any evidence 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 to overturn the special master's determination.

Celotex had less than $7 million in primary insurance when it filedfor bankruptcy, but believed future asbestos litigation could affect its excess insurance. The company actually anticipated the need for multiple layers of excess insurance coverage. However, the bankruptcy court found no evidence to show that Celotex provided adequate notice to its insurance companies that had excess coverage.

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

The process can be difficult to understand. Fortunately, the trust offers a user-friendly tool for managing claims and an interactive web site. The website also features an area dedicated to claims deficiencies.

Christy Refractories Asbestos Trust

At first, Christy Refractories' insurance pool was worth $45 million. The company was declared bankrupt in 2010 however. The reason for the bankruptcy filing was to settle asbestos lawsuits. In the meantime, Christy Refractories' insurance carriers have been settling asbestos-related claims for roughly $1 million per month.

There have been more than 20 billion dollars released from asbestos trust funds in the 1980s and into the 1990s. These funds can be used to cover the loss of income and therapy costs. These funds include 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 product range included insulation and refractory materials which included asbestos. In 2002 the company filed for Chapter 11 bankruptcy. However it was reinstated in 2006. It was able to handle 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 used 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, massive tort actions and a 20 year time limit on the distribution of funds.

The Western MacArthur Asbestos Settlement Trust has paid out over $500 million in claims. It also handles claims against Yarway.

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 originally filed in 2007. It is a trust that helps victims of asbestos exposure. The Federal Mogul marion asbestos PI Trust is a bankruptcy trust which provides financial compensation for diseases that were caused by asbestos exposure.

The trust was first established in Pennsylvania with 400 million dollars in assets. After the trust's establishment it made payments of millions to people who were claiming.

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

The primary goal of the trust is to provide the financial compensation needed for asbestos-related illnesses among the roughly 2,000 professions that utilize asbestos. The trust has already paid out more than $1 billion in claims.

The US Bankruptcy Court figured that asbestos liabilities' total value was approximately $9 billion. It also found that it was in the best interest of creditors to maximize the value of the assets available to them.

The Asbestos PI Trust was created in 2007. Elihu Inselbuch, a partner in the firm Caplin & Drysdale, served as the Trust attorney.

The trust created Trust Distribution Procedures, or TDPs to handle claims. These TDPs are designed to ensure that all claimants are treated equally. They are based on historical values for substantially similar claims in the US tort system.

Reorganization of asbestos companies helps protect them from mesothelioma lawsuits

Many asbestos lawsuits are settled each year, thanks in part, to bankruptcy courts. 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 operating and provide relief to those who have not paid their creditors. Additionally, Athens asbestos attorney it could be possible for the company to be protected from lawsuits by individual creditors.

For instance the trust fund could be established for asbestos-related victims as part of a restructuring. These funds can be used to pay out in cash, gifts or a combination of both. The reorganization discussed above consists of an initial funding proposal, which is followed by a reorganization plan approved by the court. A trustee is appointed once the reorganization was approved. It could be an individual or a bank, or a third party. In general, the most effective restructuring will benefit all participants.

In addition to announcing a brand new strategy for bankruptcy courts, the reorganization reveals some powerful legal tools. It's not a surprise that many firms have filed for chapter 11 bankruptcy protection. Certain asbestos-related companies were forced to file chapter 7 bankruptcy to ensure their safety. For instance, Georgia-Pacific LLC filed for chapter 7 bankruptcy in 2009. The reason for this is quite simple. To avoid mesothelioma lawsuits, Georgia-Pacific filed for a reorganization and rolled all of its assets into one. It has been selling its most valuable assets in order to take the financial gimmicks under control.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it harder to make fraudulent claims against Athens asbestos attorney trusts. The legislation will make it much 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 that asbestos trusts publish a list listing the claimants on a public court docket. They must also provide the names and exposure history as well as compensation amounts that claimants have received. These reports, which can be viewed publicly, would help to prevent fraud.

The FACT Act would also require trusts to disclose any other information such as payment details even if they're 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 donations from asbestos-related businesses.

The FACT Act is a giveaway to asbestos-related companies with large profits. It also causes a delay in the compensation process. In addition, it creates important privacy concerns for victims. In addition, the bill is an overly complicated piece of legislation.

In addition to the information that has to be made public In addition to the information that must be published, the FACT Act also prohibits the publication of social security numbers, medical records, and other data protected by bankruptcy laws. The law also makes it difficult to get justice in the courtroom.

Aside from the obvious question of how a victim's compensation may be affected by the FACT Act is a red herring. The Environmental Working Group studied the House Judiciary Committee's greatest achievements and found that 19 members were awarded campaign contributions from corporations.