Bankruptcy Trusts
The reality of asbestos litigation is that there are very few defendants remaining that have the financial resources to pay claims. For that reason, bankruptcy trusts are playing a larger and larger role in assuring fair compensation for asbestos victims. Since the first major bankruptcy filing by Johns-Manville Corp., in 1982, nearly 70 companies that either made or installed asbestos insulation or that sold or used products containing asbestos have filed for bankruptcy. Since the beginning of 2000, at least 40 companies have filed for bankruptcy protection. At Carlile Law Firm LLP we have a large highly trained staff of bankruptcy analysts that devote 100% of there time on filing and processing our clients claims for compensation filed with various bankruptcy trusts.
How it works
When a company files for bankruptcy, actions against it are suspended pending a decision by the Bankruptcy Court, which must approve a plan of reorganization. The reorganization plan must be submitted to creditors and to the court. Most companies set up settlement trusts as part of the plan. These are trusts that are organized to process, liquidate and pay all valid asbestos personal injury claims according to procedures approved by the bankruptcy court. Asbestos claimants, including future claimants, file claims against the settlement trust rather than against the company declaring bankruptcy.
Monies may not be disbursed to claimants until the court approves a bankruptcy plan. The large number of asbestos claims, some of which pose complex medical issues, often causes the bankruptcy process to take from several months to several years.
Claimants should be aware that the medical and asbestos exposure requirements vary for each settlement trust. Approved claims are paid based on the current payment percentage at that time. Typically, the trusts determine the settlement value of the claim, then apply a payment percentage which is only a fraction of the total value of the claim. Most trusts now pay from 5% to 15% of a claim's value.
Bankruptcy Trusts in which we are filing (or plan to file) claims
The following is a list of the companies that have filed for bankruptcy and in which we are presently filing or plant to file claims in the future.
Johns-Manville Keene W.R. Grace
UNARCO Fuller-Austin United States Gypsum
Lone Star Steel Stone and Webster Swan Transportation
National Gypsum Pittsburg Corning G-I Holdings
Celotex GAF Federal Mogul
Fibreboard Flexitallic Artra Group
Owens-Corning Babcock and Wilcox Shook and Fletcher
Pilbrico NARCO Kaiser Aluminum
J.T. Thorpe Harbison-Walker A.P. Green
AC&S Brown & Root/DII Congoleum
Combustion Engineering Pfizer/Quigley Flintkote
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