Judge Frees Travelers From Big Payout for Manville Asbestos Creditors – Bankruptcy Beat – WSJ

Quoted from http://blogs.wsj.com/bankruptcy/2012/03/05/judge-frees-travelers-from-big-payout-for-manville-asbestos-creditors/

Judge Frees Travelers From Big Payout for Manville Asbestos Creditors

  • WSJ – Bankruptcy Beat
  • March 5, 2012, 3:35 PM

By Jacqueline Palank

A federal judge recently freed insurer Travelers from obligations to pay out $510 million in long-running litigation over asbestos liabilities in the three-decade-old bankruptcy of Johns Manville Corp.

Under settlements struck nearly a decade ago, Travelers agreed to pay $445 million to individuals who said they were injured after being exposed to asbestos in Manville’s insulation and other building products. According to Bloomberg, U.S. District Judge John G. Koeltl last week ruled that Travelers doesn’t have to make these payments, or another $65 million in interest, because a condition of the deals wasn’t met.

“Because a condition precedent in the settlement agreements was not satisfied, it was error to require Travelers to make the settlement payments,” Koeltl said, referring to the 2011 bankruptcy-court ruling he said was wrong to keep Travelers on the hook.

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