Approved Congoleum Bankruptcy Plan Puts All Asbestos Claims in Same Boat

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Approved Congoleum Bankruptcy Plan Puts All Asbestos Claims in Same Boat

Mary Pat Gallagher

New Jersey Law Journal

July 21, 2010

 

After nearly seven years and more than a dozen failed attempts, a reorganization plan allowing Congoleum Corporation to emerge from bankruptcy has finally met with a federal judge’s approval.

 

The Chapter 11 plan, approved June 7 and effective July 1, establishes a fund to pay an estimated 100,000 plus asbestos claimants. Congoleum’s insurers — whose refusal to cover the mounting volume of those claims triggered the bankruptcy — are to contribute $253 million, and the reorganized Congoleum has pledged 50.1 percent of its equity.

 

All asbestos claimants — even those who agreed to settle before the bankruptcy case was filed on Dec. 31, 2003 — are placed in the same class and their claims are to be processed through the plan trust and resolved in the same manner.

 

In an opinion issued Monday, U.S. District Judge Joel Pisano in Trenton said the single-class placement is consistent with In re Combustion Engineering, 391 F.3d 190 (3d Cir. 2005), which held that a pre-bankruptcy settlement with some asbestos claimants violated the Bankruptcy Code’s requirement of equality of distribution among creditors. That ruling changed the landscape for resolving mass claims in the bankruptcy context.

 

The approved Congoleum plan wiped clean a series of settlements with various groupings of claimants both before and during the bankruptcy case.

 

[Article continues at original source]

Comments

  1. I would like to know is there a new update on the(Approved Congoleum Bankruptcy plan puts All
    Asbestos Claims in Same Boat).Last information that i read onJULY 21,2010.What about JULY 2011?
    Also when will Congoleum be paying the asbestos claimants?I am speaking inbehalf of my deceased
    Husband which died from asbestos lund dieased.I been waiting a long time to here some Good NEWs.Hope to here from someone soon.Thank You

    • Jean Casasanta says:

      Hello, Everyone who still has a case pending with congoleum. Yes, I to have been waiting for many years to be exact 18 years. I was also told they went bankrupt. When I call the attorneys they also state “nothing yet”. It makes you wonder if they are doing anything about this settlement. Yes, they could be holding back the money and collecting interest on it. You do wonder.

  2. dorothy redmond says:

    i have been waiting a long time [years ]for congoleum settlement. but they will not tell you anything they found me when it was time to vote for the settlement butnow can’there a wordi call they will not answer the phone.and when you do get some one they tell you to contact your laywer who are they now since the one you file with years ago has moved from his old and you do not have a new phone number.some time i woner are we still on the list or did they throw it away?

  3. Hello Ms Dorothy Redmond my name is(Ruth Harris)I say that you post a comment about Congoleum Bankkruptcy settlement.I see that i am not the only one that has been waiting to here from then my self.I would like for you to Email me sometime.I would like to chat with you about Congoleum Bankruptcy.One of my Email is ([email protected])or([email protected]).Hope to here from you soon.Be Blessed

  4. dorothy redmond says:

    well i thoutht we would have some money for christmas but i guess iam wrong but i bet the other people will have some money for christmas and all other holiday.that dont have to live every day from check to check and some time no check at all.they could pay some money are they wailting for people to die so the money goes back to the trust fund where it is now or in someone else account.dont forget God is watching you .

  5. dorothy redmond says:

    will i ever get money from congoleum why cant they pay the money and be through with it and stop holding on to it .we know they are going to get the bigest part of it anyway.so send me a check .

    • Hi out there all that is reading this comment.I see that we are still waiting to here some good news about Congoleum Trust and when will they be making payment setup for each claims.As of this month i got a email from my Asbestos Lawyer and he said their were no new updates at this time.I hope we will be getting some good news very soon.Be bless.

  6. DOROTHY REDMOND says:

    RUTH; I READ YOUR COMMENT DID YOU HAVE TO GET A LAYWER FOR YOUR SELF OR DID YOU USED THE COMPANY LAYWER NO ONE CONTACTED ME ABOUT ANYTHING MAY BE I NEED TO CONTACTED SOMEBODYVERY SOON SO I WANT MISS OUT ON MY MONEY LET ME KNOW THANK .DOROTHY REDMOND

    • Hello,ms Redmond i was reading your comment about the question you was asking me about talking to a lawyer about case.To answer your first question yes you need alawyer handle your claim.You need to talk to an Asbestos Lawyer.you can go on line and look up Asbestos Bankruptcy Attorney At Law.I got my lawyer one day by washing Tv the name came up about your love one that had die from Mesothelioma (Cancer of Pleura,which is the covering of the lungs.)No i didn’t used the company lawyer.Good luck hope to here from you very soon!!!!

  7. Sandie B says:

    We have been waiting to hear about this BK claim for about 5 years now. On two different occasions we were sent papers to vote on a settlement, which we did and sent back. That was 3 and a half years ago. I have been watching the updates RE: the court hearings. They have reached a settlement back in 2009. I keep calling my original lawyer who contacted us when my Father died of Mesothelioma back in 3/2004. They keep saying that all they know is there is not a settlement trust fund set up yet!!! Basically that means they have NO information at all!!!! So my question is why did they send us these voting packages years ago (TWICE) and get everyone’s hopes up and than never to hear from them again???Hope to get some answers soon, RIGHT?

  8. Julie B says:

    I also have been waiting since 2003, have received those 2 packets also. And like the rest of you, here we sit, the waiting and wondering if we will (ever) see a check.

  9. dorothy says:

    hello every one . dorothy r. speaking .we are waiting in vain i belive it do not take that long fro no one toget paid from a settlement i think they are trying to keep our money or hope that we are all died but you know there is a God that sit high and look low to all that is going on these people dont care nothing about us. but i bet you they got their money.

  10. Nancy M. says:

    August 9,2012
    I have been waiting 9 years and still no money from Congoleum. I called my attorney but I always get a smart mouth helper never the attorney.They act as if they are doing you a favor but without the clients they would not have a job. I wonder sometimes if they get the money and collect interest for a period of time before they pay the clients. If I knew this to be true I would contact my congressman and report it. I have a letter from my congressman and he supports asbestos victims 100%.I also have been waiting on AC and S for 12 years. I always get the same run around quote[ they are still in court] It’s time I think for my law office to be investigated.

  11. yes that is true nancy. when they get through we want have a penny i think i will contact my congressman to and very soon and who ever else i need to talk to. because this dont make any sence the way we are being treated.we are going to pray together and for one another.God bless all of you. we will talk later.stay in touch Dorothy R.

  12. EVERY ONE CHOULD GET 250 THOURSAND TO 1 MILLION EACH FROM THE ASBESTOS SETTLEMENT .BECAUSE IT IS OUR LIFE AND FAMILY MEMBER LIFE ON THE LINE WITH WHAT LIFE WE HAVE LEFT TO LIVE. BUT THEY ARE GETTING ALL THE MONEY. WE WILL BE OFFICEDER A SUM OF $8 to $10 THOURSAND DOLLAR THINKING WE DONT KNOW ANY BETTER,OH THET WILL BE GLADE TO GET THAT BUT LIFE HAS ON PRICE TAG. BUT I HOPE WE GET MORE THAN THAT. BECAUSE WE ARE THE ONE THAT HAS THE ASBESTOS THEY DONT GOD BLESS EVERY ONE WHO READ THIS. DOROTHY REDMOND MISS.

  13. dorothy redmond says:

    hello every one.has anybody heard anything about the case and when we will be paid they dont tell us anything about the case. but i bet they will contact you when they take out tax on you and if we have any left. they will this is what you have left after tax.

  14. dorothy redmond says:

    Hello! Every one Happy New Year And god Bless all does anyone know when will we get any money from congleum settlement. or have we all been made fool? Please reply .dorothy redmond lexington ms.

    • Good morning out there!! hope someone will read and reply back with some good news.I got an email from my Attorney today and he said I should here from the bankruptcy court by the middle of July.hallelujah,hallelujah !!!

  15. Linda Parks says:

    I will be contacting our families legal representative later in February to pose the question of when settlements will begin to be paid. We too have have been waiting many, many, years. If I get any information, I will post it to this site to advise the rest of you. I too was mailed two different sets of paperwork to sign on behalf of my family members. After that – not a word. Let’s hope that finally Justice will be served, and while we can’t have our loved ones back, (I really miss my Dad!!!) maybe we can at least know that they didn’t suffer and die in vain, that perhaps they can still provide some financial comfort/security to those of us they left behind. If I can get any information I will pass it on to all of you. May God bless and keep you all in his gentle care.

  16. Hello out there ladys hoping someone has some good news about the Congoleum Trust settlement and when will they be making claim payments.would like to here from someone.Hope all is well!!

  17. dorothy redmond says:

    hello! Every body out there. has anyone had any good news on the settlement from congoleum trust i hope they will pay us soon .there has to be somebody out there we can get to help us with this matter.i know somebody is reading these memo so please give us a call or email. (waiting on a blessing group)

  18. John D. says:

    To Harris/Redmond/Parks, etc.
    Ladies, I sympathize with your family losses and the pain of having to wait
    for so long, to receive settlement. To the lady who says she ‘should be getting up to a million dollars’… this is unrealistic and does not reflect the size of damages YOU
    suffered by the death of some one else. It is indeed sad that emotional pain and suffering
    cannot go away just with money. Remember, the Congoleum company AND many of its employees have also lost a huge amount, with the company itself (it’s employees and all its shareholders) effectively destroyed, through the mistakes made by a few. Remember
    also, no one DELIBERATELY caused the human damages that happened here!. No one set out to deliberately destroy anyone, which might THEN entitle huge damages.
    However you are all entitled to the settlement, for sure, if you were registered.
    No one if carried out as per the mandate, will get more than any other of the same class.
    In my humble opinion, instead of emailing back and forth to like minded claimants, each of you should write clear, inquiry letters (not emails) identifying how you are a claimant, AND- either FAX them or send them REGISTGERED MAIL so you will have a proof of delivery. Send these to your own attorney and copies to the class action attorneys in charge of the legal action and the fund, AND also to the bankruptcy trustee (receivers).
    I suggest if you are still not paid, that you demand to know:
    A. How much will you be receiving?
    B. When will you be receiving it?
    C. What and why is there still any delay to pay out the fund?
    THEN, if you all do this, and ask others to do the same, with attorneys and business executives being obliged to answer real inquiries, you may get much better results.
    Good luck to all of you.
    John D. (Montreal)
    (Veteran of legal wars for 35 years)
    PS: and if you got paid in the meantime, hope you can use the above info, and
    Good Luck…

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