Last month we posted our initial report about the Garlock bankruptcy trial, July 2013 Garlock Estimation Trial In North Carolina: Ruling By Bankruptcy Judge George Hodges Rejects Company’s Attempt To Reveal Confidential Claims Information From Other Asbestos Trusts.
That trial is continuing this month, and we get an update from this August 3, 2013 article from the Charlotte Observer, “Billion-dollar asbestos fight underway in Charlotte court”:
The company filed for Chapter 11 protection in 2010, one of dozens of otherwise solvent businesses that turned to the courts for help in settling thousands of claims of asbestos poisoning.
To get out of bankruptcy, Garlock must come up with a figure to cover future payments to those who blame company products for their cancer or other illnesses.
In its filings, Garlock placed that liability “at or near zero.” It says its products are safe but has agreed to set up a $270 million trust fund to cover claims.
A committee of attorneys representing victims said the company’s estimate “has no foundation in reality.”
It is up to U.S. Bankruptcy Judge George Hodges to make the final determination about how much Garlock should pay to its so-called “Asbestos Trust” which is intended to pay current and future victims of asbestos diseases such as malignant mesothelioma and asbestos-related lung cancer.
We will be watching for Judge Hodges’ ruling about the Garlock asbestos liability amount the company needs to pay in order to emerge from Chapter 11 bankruptcy.
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