Australian press reported today, the James Hardie asbestos compensation fund may run out of money by mid-2010 according to current figures. In 2006 the company started the Asbestos Injuries Compensation Fund (AICF) to assist victims of mesothelioma and other asbestos-related diseases (developed as a result of
asbestos exposure from products they manufactured). The original fund was 1.8 billion dollars and is currently estimated at 84.2 million dollars. If the fund continues to pay
asbestos settlements at the estimated rate, the fund will be depleted in 2010. One consequence could be victims receiving installments rather than full amounts or payments being delayed. Others fear no compensation could result if the fund runs out. Part of the funding agreement between James Hardie, the AICF and NSW government states the company will contribute either the projected amount owed to victims or 35 per cent of its annual free cash flow. The corporation has not made contributions to the fund because it has not had positive cash flow. Hardie plans to provide an update on settlement funds after November 23rd when they release half-year results. A decision about contributions to the fund will be made in the Spring after their fiscal year ends March 31st. Victims' advocates and government officials are urging the government to step in to fill the gap if necessary. All are hoping for a quick resolution so victims and families won't have to deal with partial payments and delays in addition to the stress of coping with their diseases. Read more at
Asbestos fund could run out by mid-2010.
James Hardie Asbestos Fund May Run Out