Asbestos Bankruptcy Approved
Article Added October 6th, 2006 - Print This Story - Bookmark This Story
A building material company received preliminary approval from a judge this week in their bankruptcy case. The company had to decided to declare bankruptcy after a slew of health claims were reported for asbestos exposure.
A judge has given preliminary approval to Owen Corning to declare bankruptcy this week. The materials company was forced into the declaration after a multitude of health claims were received related to their products, which contain asbestos. The asbestos cases often times force a company into bankruptcy, which helps to settle the claims as well as restructure the affected company when emerging from the lawsuits. While some victims wanted each case to be heard individually, the judge declared that this would encumber the company and courts for years, which may not help some of the more advanced victims.
With more than $7 billion in assets, Owens Corning will now be ordered to place funds in a trust, which will distribute compensation to each of the victims in the lawsuit. The courts expect $5 billion of the assets to be allotted to the fund, and another $2.2 billion to be transferred to the holders of the company’s debt. The plan will go into effect at the end of October with new stock being issued for current holders.Article Added October 6th, 2006 - Print This Story - Bookmark This Story
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