MesoRC: Mesothelioma Resource Center

Find mesothelioma info in your state Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Legal Information
• What are my legal rights?
• Why should I file a lawsuit?
• How does the legal process work?
• How long will my potential case take?
• How long can I wait to file a lawsuit?
• How much will it cost?
• Will I have to travel?
• Will I have to testify at trial?
• Will my case be part of a class action?

Asbestos Bankruptcy Trusts
• Asbestos bankruptcy trusts overview
• Asbestos bankruptcy trust claims
• Bankruptcy trust claims - How we can help

About Sokolove Law
• Sokolove Law overview
• Sokolove Success Stories
• Organizations we support

If you or a loved one has been diagnosed with mesothelioma or another asbestos-related disease, contact us for a free, no-obligation consultation.

THE SOKOLOVE PROMISE
If we find that we can move forward with your case, we'll start working right away so you don't have to waste precious time.

Asbestos Bankruptcy Trusts: Overview

The connection between lung disease and asbestos exposure had been reported by the early 1900s.  However, the demand for asbestos products continued to rise for decades, peaking in the years during and after World War II.  By the early 1970s, when the link between asbestos and cancer was clearly established, the damage was already done.  Millions of workers had been exposed to asbestos on the job, and millions more Americans were exposed in their homes, schools and office buildings.

Why Asbestos Companies Went Bankrupt

Despite the fact that their own internal studies revealed the dangers of asbestos, asbestos companies chose to hide the evidence from the public.  For decades, they continued to ignore the suffering of their employees.  In 1971, a Federal court issued the first verdict against an asbestos manufacturer in a product liability case and awarded damages to the worker who filed the complaint. The verdict was upheld on appeal, and in the following years, the courts were flooded with asbestos litigation.

Instead of acknowledging the devastating effects of asbestos exposure and taking steps to protect their workers, manufacturers chose to defend against the complaints.  In boardrooms across the country, growing anger over corporate liability redirected the focus from the tragedy of injured workers to the financial pain of manufacturers.

Under the weight of legal bills and award payments, asbestos companies began to cry for asbestos litigation reform.  In 1982, Johns Manville and UNARCO became the first two asbestos companies to file for bankruptcy protection under Chapter 11.  Since then, more than 80 companies have filed for bankruptcy to buy time and reorganize their finances in order to pay asbestos liability claims.

The Purpose of Asbestos Bankruptcy Trusts

Filing bankruptcy under Chapter 11 does not mean an asbestos company is “broke” or out of business.  Chapter 11 bankruptcy does not involve pension funds, employment, or liquidation of assets.  For an asbestos company seeking Chapter 11 protection, the bankruptcy filing simply suspends any pending or future lawsuits against the company as the bankruptcy case proceeds. 

An asbestos company in Chapter 11 asks the court to approve a reorganization plan that includes a settlement trust funded by cash, insurance, or company stock.  Upon court approval, existing claims are transferred to the trust, and future claims will be filed against the trust, rather than the company that declared bankruptcy.

Asbestos bankruptcy trusts are set up under strict rules to ensure that funds are available for future claims.  In total, there is over $30 billion available in these trusts to pay victims and families who had been exposed to asbestos. The requirements for a claim vary from one bankruptcy trust to another, and trusts will not always assist claimants in filing their claims.

In addition, filing a claim against a settlement trust is different from filling a lawsuit against a solvent company. For example, you may be eligible to file a claim against a trust even if the statute of limitations has passed for filing a lawsuit.  If you believe you have a claim against an asbestos bankruptcy trust, an experienced attorney can help you avoid errors and ensure your claim is properly filed.

List of Bankrupt Asbestos Companies

The following is a partial list of known asbestos companies that have filed for bankruptcy protection. 

Johns Manville, 1982 UNARCO, 1982 Waterman Steamship Corp., 1983 Wallace & Gale, 1984 Forty-Eight Insulations, 1985 McLean Industries, 1986 Philadelphia Asbestos Corp., 1986 Prudential Lines, Inc., 1986 Standard Insulations, Inc., 1986 United States Lines, 1986 Gatke Corp., 1987 Nicolet, Inc., 1987 Todd Shipyards, 1987 Delaware Insulations Distributors, 1989 Hillsborough Holdings, 1989 Raymark Corp./Raytech Corp., 1989 Ancor Holdings/National Gypsum, 1990 Carey Canada, Inc., 1990 Celotex Corp., 1990 Eagle Pitcher Industries, 1991 H.K. Porter Co., 1991 Cassiar Mines, 1992 Kentile Floors Inc., 1992 American Shipbuilding Co., 1993 Keene Corp., 1993 Rock Wool Manufacturing, 1996 Brunswick Fabricators, 1998 Fuller-Austin Insulation Co., 1998 M.H. Detrick, 1998

Harnischfeger Corp., 1999 Rutland Fire Clay Co., 1999 Armstrong World Industries, 2000 Babcock & Wilcox Co., 2000 Owens Corning/Fibreboard, 2000 Pittsburgh Corning, 2000 Burns & Roe, 2001 EJ Bartells Co., 2001 Federal Mogul Corp., 2001 G-I Holdings, 2001 Insul Co., 2001 Murphy Marine Services, 2001 Skinner Engine Co., 2001 Swan Transportation Co., 2001 United States Mineral Products, 2001 USG Corp., 2001 W.R. Grace Co., 2001 A-Best Products, 2002 ACandS, Inc., 2002 Artra Group, Inc., 2002 GlT, 2002 Harbison-Walker/AP Green, 2002 JT Thorpe, 2002 Kaiser Aluminum Corp., 2002 North American Refractories Co. (NARCO), 2002 Plibrico Co., 2002 Porter-Hayden Co., 2002 Shook & Fletcher Insulation Co., 2002

Special Metals Corp., 2002 Western Macarthur, 2002 C.E. Thurston, 2003 Combustion Engineering, 2003 Congoleum Corp., 2003 Dresser Industries/Halliburton, 2003 Mid-Valley /Halliburton, 2003 The Muralo Co., 2003 Flintkote Co., 2004 JP Stevens, 2004 Ogelbay Norton (ONCO), 2004 Quigley Co., 2004 Special Electric Co., 2004 Utex Industries, 2004 API Inc., 2005 Asarco, Inc., 2005 Brauer Supply Co., 2005 Lake Asbestos of Quebec, 2005 ABB Lummus Global, 2006 Dana Corporation, 2006 Lloyd E. Mitchell Co., 2006 Pacific Insulation Co., 2007 Thorpe Insulation Co., 2007 Christy Refractories Co., 2008 Hercules Chemical Co., 2008 T H Agriculture & Nutrition, 2008