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Asbestos Bankruptcy Trusts

Generally asbestos bankruptcy trusts are typically established by companies who have filed for bankruptcy. Trusts are created to pay personal injury claims made by asbestos exposure victims. Since the mid-1970son, at least 56 asbestos bankruptcy trusts have been established.

Armstrong World Industries Asbestos Trust

It was established in 1860 in Pittsburgh, PA, Armstrong World Industries is the world's largest wine bottle cork manufacturer. It has more than 3000 employees and operates 26 manufacturing facilities around the world.

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

The company's asbestos-containing materials were extensively used in the commercial, residential and military construction industries. Because of the exposure to asbestos, thousands of Armstrong workers were afflicted with asbestos-related illnesses.

Although asbestos is a natural mineral but it is not a safe material to consume by humans. It is also called a fireproofing substance. Companies have established trusts to pay compensation to victims of asbestos's dangers.

In the aftermath of the bankruptcy of Armstrong World Industries, a trust was created to compensate the people who were affected by the company's products. In the first two years, the trust settled more than 200,000 claims. The total compensation totaled more than $2 billion.

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

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

Celotex Asbestos Trust

Celotex Corporation was a distributor and manufacturer of building materials. During the 1980s, Celotex Corporation was hit by a flood of lawsuits that claimed asbestos-related property damage. These claims, along with others claimed billions of dollars of damages.

In 1990, Celotex filed for bankruptcy protection. To deal with asbestos-related claims the Asbestos Settlement Trust was created through Celotex's reorganization program. The Trust filed an action in the United States District Court for the Middle District of Florida. Saiber L.L.C. represented the Trust.

In the course of the investigation the trust sought protection under two general liability insurance policies. One policy offered coverage for five million dollars, and the second policy provided coverage for 6.6 million. The trust also requested coverage from Jim Walter Corporation. The trust did not find any evidence that the trust was required by law to give notice of additional insurances.

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

Celotex had less than $7 million in primary coverage at the time of filing however, the company believed that any asbestos litigation could impact its excess coverage. The company actually anticipated the need for several layers of excess insurance coverage. The bankruptcy court could not find any evidence that Celotex provided reasonable notice to its excess insurers.

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

The process can be confusing. The trust offers a simple claim management tool, as well as an interactive website. There is also a page on the site that addresses claims issues.

Christy Refractories Asbestos Trust

Christy Refractories originally had an insurance pool of $45 million. However, in the first quarter of 2010 the company filed for bankruptcy. The reason behind the filing was to sort out asbestos lawsuits. Then, Christy Refractories' insurance carriers have settled asbestos-related claims for around $1 million per month.

Since the 1980s asbestos trust funds have paid out more than 20 billion dollars. These funds can be used to pay for the loss of income and therapy costs. The Western MacArthur Trust and the M.H. Detrick Asbestos Trust and Thorpe Insulation Settlement Trust are among these funds. Porter Asbestos Trust.

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

The Western MacArthur Trust has paid out over $1.1 billion in claims. Pneumo Corporation, Abex Corporation and Synkoloid all made use of asbestos in their products. The United States Gypsum Company also used asbestos symptoms (related web-site) in its products.

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

The Prudential Lines Trust faced hundreds of lawsuits in mass tort actions and a 20-year time limit for disbursing the funds.

The Western MacArthur Asbestos Settlement Trust has paid out more than $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 Asbestos Personal Injury Trust was first created in 2007. It is a trust designed to assist victims of asbestos exposure. The Federal Mogul Asbestos PI Trust is a trust in bankruptcy that provides financial compensation for ailments that resulted from asbestos exposure.

Initial assets of 400 million dollars were used to create the trust in Pennsylvania. Following the trust's creation, it paid out millions to claimants.

The trust is currently located in Southfield, MI. It is comprised of three separate coffers of cash. Each one is dedicated to the handling of claims against asbestos product entities belonging to the Federal-Mogul group.

The trust's main objective is to provide financial compensation for asbestos-related diseases in the nearly 2,000 occupations which use asbestos. The trust has already paid more that $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 the creditors to increase the value of the assets they have available.

The Asbestos PI Trust was created in 2007. Elihu Inselbuch, a partner in the firm Caplin & Drysdale, 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 previous values for nearly identical claims in the US tort system.

Reorganization safeguards asbestos companies from mesothelioma lawsuits

Every year, thousands of asbestos lawsuits are settled by the bankruptcy courts. In this way, large corporations are using new strategies to gain access to the court system. One such technique is the restructuring. This allows the business to continue to run and provides relief to creditors who have not been paid. Additionally, it could be possible for the company to be shielded from lawsuits brought by individuals.

For example, a trust fund may be established for asbestos-related victims as part of a reorganization. The funds could be paid out in the form of gifts, cash, or some combination thereof. The reorganization discussed above consists of an initial funding quotation that is followed by a court-approved reorganization plan. A trustee is appointed after the reorganization has been approved. This may be an individual or a bank or an entity that is not a third party. In general, the most effective restructuring will include all participants.

Alongside announcing a fresh strategy for bankruptcy courts, the restructuring offers some effective legal tools. It's not a surprise that many companies have filed for chapter 11 bankruptcy protection. Some asbestos companies were forced to file chapter 7 bankruptcy in order to be safe. Georgia-Pacific LLC, for example has filed chapter 7 bankruptcy in 2009. The reason is easy. Georgia-Pacific applied for an order of reorganization in order to defend itself from a flood of mesothelioma lawsuits. It also rolled all its assets into one. It has been selling its most valuable assets to get control of its financial problems.

FACT Act

The "Furthering Asbestos Claim Transparency Act" is currently in Congress. It will make it more difficult to file fraudulent claims against asbestos trusts. The legislation will make it harder to make fraudulent claims against asbestos trusts, and will grant defendants access to information in litigation.

The FACT Act requires that asbestos trusts publish a list listing those who are claiming on a docket of court. They must also provide the names of the claimants, their exposure history, as well as compensation amounts paid these claimants. These reports, which are able to be viewed by anyone, next page would assist in preventing fraud.

The FACT Act would also require trusts that they disclose any other information such as payment details even if they are 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 legal-related organizations.

The FACT Act is a giveaway for asbestos companies with huge profits. It also causes delays in the compensation process. It also raises privacy concerns for victims. The bill is also a difficult piece of legislation.

In addition to the information that is required to be made public in the FACT Act, 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 more difficult to get justice in the courtroom.

The FACT Act is a red untruth, aside from the obvious question about the compensation for victims. The Environmental Working Group studied the House Judiciary Committee's top accomplishments and discovered that 19 members were rewarded with campaign contributions from corporate interests.