Bankrupt Mortgage Company Gets Disclosure OK’d

Article Added April 13th, 2006 - Print This Story - Bookmark This Story

USG Corp. came to an agreement with Bankruptcy court on Monday for a claimant disclosure. The company was forced to file bankruptcy after a slew of asbestos related lawsuits.

A bankruptcy court judge approved the claimant disclosure statement for USG Corp., the world’s largest manufacturer of wallboard. This will allow the company to begin approaching asbestos personal injury claimants for votes on its reorganization plan. The Chicago based company filed the disclosure statement and reorganization plan in connection with plans to exit Chapter 11 this year. The Chapter filing followed a multitude of asbestos related lawsuits filed in 2001.

The Chapter 11 reorganization was to include the settlement of asbestos claims, the disclosure being a part of the agreement in the Chapter filing. After the settlement is voted on, bankruptcy court will follow and district court approval will be needed. Voting is scheduled through June, and objections have to be filed prior to May 26^th. Mandatory confirmation hearings will follow in the middle of June in Pittsburgh. The lawsuits were in response to employees of USG contracting mesothelioma, a lung cancer directly linked to asbestos exposure. The wallboard produced by USG was known to contain asbestos, but the company took no precautions to protect employees. A cancer of the lung lining, mesothelioma is often not detected until years after repeated exposure, making it one of the deadliest forms of cancer.

Article Added April 13th, 2006 - Print This Story - Bookmark This Story