In St. Louis, MO, a company who makes heat resistant products has filed for chapter 11 bankruptcy protection in order to manage their legal liabilities concerning
asbestos exposure lawsuits.
Christy Refractories filed its petition for bankruptcy last week. The company has been subject to many lawsuits that stem from products sold by a company they acquired back in 1995. The company began to be named in asbestos-related cases back in the early 1980s, but the frequency of these lawsuits significantly increased about 8 years ago.
The manager of Christy Refractories, Frank O’Brien, says that on a monthly basis,
asbestos settlements average out to be about $1 million per month and estimates that there are an additional 1,000 lawsuits pending. These lawsuits include people that were exposed to asbestos in schools, steel mills, and other commercial and industrial spaces causing mesothelioma and
lung cancer.
A trust fund is being established for the lawsuits, and the bankruptcy court will decide how much money should be put in to the trust fund. O’Brien says there will be at least $18 million in the fund.
O’Brien plans to keep the company running through its reorganization process. He speculates that it could take up to one year.