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Asbestos Bankruptcy Trusts

Generally, asbestos bankruptcy trusts are typically established by companies who have filed for bankruptcy. Trusts are then able to pay personal injury claims for asbestos litigation those who were exposed to asbestos. At least 56 asbestos bankruptcy trusts have been set up since the mid-1970s.

Armstrong World Industries Asbestos Trust

Armstrong World Industries was founded in the year 1860 in Pittsburgh. It is the largest wine cork producer in the world. It employs over 3000 people and has 26 manufacturing facilities around the world.

In the beginning the company was using asbestos in a variety products, including tiles, insulation and vinyl flooring. As a result, employees were exposed to the material, which can cause serious health issues like mesothelioma, lung cancer and asbestosis.

The asbestos-containing products of the company were widely used in commercial, residential as well as military construction industries. Many Armstrong workers were exposed to asbestos lawyers, which resulted in asbestos-related illnesses.

Although asbestos is a naturally occurring mineral, it isn't safe for human consumption. It is also called a fireproofing substance. Companies have created trusts to compensate victims due to asbestos's dangers.

As a result of the bankruptcy of Armstrong World Industries, a trust was set up to compensate people who were affected by the company's products. In the initial two years, the trust paid out more than 200 thousand claims. The total amount of compensation was greater than $2 billion.

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

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

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. In the 1980s, Celotex Corporation was hit with a flood of lawsuits claiming asbestos-related property damage. These claims, in addition to others claimed billions of dollars in damages.

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

In the process the trust sought coverage under two excess general liability insurance policies. One policy offered five million dollars of coverage while the other provided 6.6 million. The trust also asked for coverage from Jim Walter Corporation. The trust did not find any evidence that suggested that the trust was legally required to notify the additional insurances.

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 decision.

Celotex had less that $7 million in primary insurance at the time of filing, but believed future asbestos litigation would affect its excess coverage. In actual fact, the company foresaw the need for numerous layers of excess insurance coverage. Despite this the bankruptcy court concluded that there was no evidence to prove that Celotex provided adequate notice to its insurance providers who had excess coverage.

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

It can be difficult to understand. Luckily, the trust has a user-friendly claims management tool as well as an interactive website. The website also features a page dedicated to claim inaccuracies.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. In the beginning of 2010, the company filed for bankruptcy. The filing was to settle asbestos lawsuits. Then, Christy Refractories' insurance carriers have been paying asbestos-related claims roughly $1 million per month.

There have been more than 20 billion dollars paid out from asbestos trust funds since the late 1980s. These funds can cover the cost of therapy as well as lost income. The funds that are included in these are 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 products comprised insulation and refractory materials which included asbestos. The company filed for Chapter 11 bankruptcy in 2002 and resurfaced in 2006. It has handled 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 used pericardial asbestos in their products. The United States Gypsum Company used asbestos in its products.

The Utex Industries, Inc. Successor Trust has paid more than 22,000 asbestos claims. It 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 time limit for the amount of money that could be disbursed.

The Western MacArthur Asbestos Settlement Trust has paid more than $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 created in 2007. It is a trust which assists those who have been exposed to asbestos litigation. Federal Mogul Asbestos PI Trust which is a bankruptcy trust provides financial compensation for asbestos-related illnesses.

The initial assets of $400 million were used to create the trust in Pennsylvania. After its creation, it paid out millions to those who claimed.

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

The primary goal of the trust is to provide financial compensation for asbestos-related diseases within the 2,000 occupations that use asbestos. The trust has paid out more than $1 billion in claims.

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

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 created Trust Distribution Procedures, or TDPs to manage claims. These TDPs are designed to be fair to all claimants. They are based on 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 each year, thanks in part, to bankruptcy courts. Large corporations are now employing new methods to gain access to the legal system. One such strategy is restructuring. This allows the business to continue operating and provide relief to creditors who are not paid. In addition, it could be possible for the company to be shielded from individual lawsuits.

As an example, in a reorganization, an asbestos trust fund victims might be set up. These funds can be distributed in the form of gifts, cash or a combination of both. The reorganization discussed above consists of an initial funding quote, followed by an approved plan by the court. When a reorganization is approved and a trustee is appointed. This could be a person, a bank, or a third party. Generally, the most effective arrangement will cover all parties involved.

Aside from announcing a new strategy for bankruptcy courts, the reorganization exposes some powerful legal tools. It's not surprising that many companies have filed for chapter 11 bankruptcy protection. Certain asbestos companies were required to declare bankruptcy under chapter 7 in order to be safe. For example, Georgia-Pacific LLC filed for chapter 7 in 2009. The reason is simple. To guard itself against mesothelioma cases that have been rife, Georgia-Pacific filed for a restructuring and rolled all of its assets into one. To alleviate its financial problems it has been selling off its most valuable assets.

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 harder to file fraudulent claims against asbestos trusts and will allow defendants unlimited access to information in litigation.

The FACT Act requires that asbestos trusts release a list of the claimants on a public docket of court. They must also publish the names of the claimants, their exposure history, as well as compensation amounts that claimants have received. These reports, which are able to be viewed by the public, will assist in preventing fraud.

The FACT Act would also require trusts to disclose other information, including payment details even if they were part of confidential settlements. The Environmental Working Group's report on FACT Act revealed that 19 House Judiciary Committee members voted for the bill. They also received campaign contributions from asbestos-related companies.

The FACT Act is a giveaway for large asbestos companies. It would also cause a delay in the process of compensation. It also creates privacy issues for victims. The bill is also a tangled piece of legislation.

The FACT Act prohibits publication of information in addition to the information that must be made public. It also prohibits the release of social security numbers, medical records, or any other information protected by bankruptcy laws. The law also makes it more difficult to seek justice in a courtroom.

The FACT Act is a red untruth, aside from the obvious question about how victims might be compensated. The Environmental Working Group studied the House Judiciary Committee's most notable accomplishments and discovered that 19 members were rewarded with campaign contributions from corporations.