A July 12, 2013 article published by the Dow Jones Bankrutpty News, “Pfizer on Track to Shake Off Quigley Asbestos Claims”, provides a good summary of the situation:
In all, Pfizer paid $1.25 billion to large groups of asbestos plaintiffs outside of the bankruptcy process, according to Schulte Roth & Zabel LLC , the firm that represented Quigley through a bankruptcy that began in 2004. Quigley’s Chapter 11 plan calls for Pfizer to contribute an additional $964 million worth of cash, insurance and other assets to fund a trust that will pay asbestos personal-injury claims….
Judge Bernstein, who rejected an earlier version of the Quigley plan in part due to settlements that swayed plan-voting results, confirmed Quigley’s Chapter 11 plan June 26 at a hearing in the U.S. Bankruptcy Court in Manhattan. Because Quigley’s Chapter 11 plan resolves personal injury claims, it must be approved by a federal district judge as well.
Tuesday, Quigley started the process of getting a federal judge to sign off on the Chapter 11 plan, filing papers in the U.S. District Court in New York that say the sole objector to the plan when it was considered by the bankruptcy court has said it will not appeal.
The confirmed plan boosts Pfizer ‘s contribution to the trust and follows a separate $860 million settlement with asbestos claimants that had blocked the earlier plan.
If and when the Pfizer-Quigley bankruptcy plan is put into effect, the many thousands of asbestos claims filed against Quigley in the past (if still unresolved) and all new cases going forward will be channeled into an asbestos trust fund and away from the court system.
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