Manville Filings By Selected Industry
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Transcript of Manville Filings By Selected Industry
Asbestos-Related Bankruptcies
Year Company
1982 UNR Industries, Inc. Johns-Manville Co. Amatex Corp.
1983 Waterman Steamship 1984 Wallace & Gale Co. 1985 Forty-Eight Insulations, Corp
PACORPrudential Lines, Inc.
1986 Standard Insulations, Inc.U.S. Lines
1987 Nicolet, Inc.Gatke Corp.Todd Shipyards
1988 Chemetron Corp 1989 Raytech (Raymark)
Delaware Insulations1990 Standard Asbestos Mfg. & Insul1991 Eagle-Picher
H.K. Porter Co.1992 Cassiar Mines
Kentile Floors1993 Keene Corp.
American Shipbuilding, Inc.1995 Lykes Brothers Steamship1996 Rock Wool Mfg.1998 SGL Carbon
M.H. DetrickBrunswick FabricatorsFuller-Austin Insul.
1999 Joy TechnologiesRutland Fire & Clay
2000 Babcock & WilcoxPittsburgh CorningBurns & Roe EnterprisesE.J. BartellsOwens CorningArmstrong World Industries
2001 G-1 Holdings (GAF Corp)W.R. GraceSkinner Engine CoUSG (US Gypsum) Corp.Federal MogulEastco Industrial SafetyWashington Group Int’l, Inc.Bethlehem Steel
2002 North American RefractoriesKaiser AluminumPlibrico RefractoriesPorter-HaydenAmerican ClubHuxley Development CorpHarbison-Walker RefractoriesContinental Producers Co.A.P. Green Indus.Shook & Fletcher Atra Group, Inc. (Syncoloid)
Manville TrustTDP Liquidations Average
02/10/02 Payments Liquidated AverageCategory Scheduled Disease # Resolved Millions $ Value Payment
7 Malignant Mesothelioma 17,644 4% $356 21% $205,807 $20,1806 Lung Cancer (Two) 25,017 6% $225 13% $92,111 $9,0025 Lung Cancer (One) 3,687 1% $22 1% $61,308 $6,018
Subtotal - Lung Cancers 28,704 7% $247 15% $8,605
4 Other Cancer 5,712 1% $22 1% $40,818 $3,930Subtotal - All Cancers 52,060 12% $625 37% $12,005
3 Disabling Bilateral Interstitial Lung Disease 137,614 33% $617 37% $50,439 $4,4842 Nondisabling Bilateral Interstitial Lung Disease 146,556 35% $341 20% $25,190 $2,3311 Bilateral Pleural Disease 82,809 20% $95 6% $12,137 $1,1540 Other* 941 0% $4 0% $40,332 $4,083
Subtotal - All Non Malignancies 367,920 88% $1,057 63% $2,873
Total 419,980 $1,682 $43,073 $4,005
NOTE: The number of Category I, II and III claims and the amounts paid include previously disqualified claims resubmitted by the Maritime Asbestosis Legal Clinic, and also include the small number of claims for which the value was derived from Individual Evaluation or arbitration following Individual Evaluation.
* Includes some cancers.
Manville Trust Remaining Assets & Claims Liabilities Estimated
Market Value (Millions)
Remaining Assets 1/31/2002Equities $973 49%Fixed Income $736 37%Cash $273 14%Total Assets Remaining $1,982 100%
Claim Liabilities * # Claims Amt PaidResolved 448,723 $2.739 billion paidDisqualified 700Deactivated (Expired offer and denials) 43,264 33,779 of which were denied
Outstanding Dollar Offers 20,680Denials & Work-in-process 21,996Subtotal Active 42,676Total Claims (11/30/01) * 524,421 (Exclusive of unregistered claims)
*Excludes voided, co-defendant and distributor claims and cases liquidated by JM, but paid by the trust
NOTE: There was a voluntary claim filing moratorium from 9/1/01 to 10/15/01.
60686068
58105860
5805
5693
5500
5600
5700
5800
5900
6000
6100
8/99-7/01 9/99-8/01 10/99-9/01 11/99-10/01 12/99-11/01 1/00 -12/01
Chart 2: POC ReceiptsRolling Two Year Average
Manville TrustInjury by Year Filed with the Trust
Filed Mesothelioma Lung Cancer
Other Cancer Asbestosis Pleurals Subtotal
(Denied) or Unknown Total Malignancies
Non-Malignancies
1988 1,509 2,885 820 20,862 5,749 31,825 648 32,473 16.4% 83.6%1989 4,783 9,334 1,892 49,722 26,261 91,992 8,205 100,197 17.4% 82.6%1990 1,543 1,680 256 6,934 4,808 15,221 6,320 21,541 22.9% 77.1%1991 842 1,437 281 7,836 3,757 14,153 1,156 15,309 18.1% 81.9%1992 745 1,356 278 9,003 3,015 14,397 1,350 15,747 16.5% 83.5%1993 499 763 165 8,465 3,119 13,011 1,097 14,108 11.0% 89.0%1994 1,238 1,800 308 15,497 3,976 22,819 1,625 24,444 14.7% 85.3%1995 1,318 2,262 438 19,775 5,855 29,648 1,865 31,513 13.6% 86.4%1996 1,313 2,193 495 35,511 6,534 46,046 5,011 51,057 8.7% 91.3%1997 1,182 1,752 427 13,909 4,216 21,486 2,188 23,674 15.6% 84.4%1998 1,118 1,500 416 20,593 3,832 27,459 1,965 29,424 11.0% 89.0%1999 1,460 1,845 379 19,159 6,131 28,974 2,759 31,733 0.1% 87.3%2000 1,830 2,609 546 41,213 8,167 54,365 3,676 58,041 9.2% 90.8%
2001 1,674 2,303 581 53,732 10,322 68,612 20,826 * 89,438 6.6% 93.4%21,054 33,719 7,282 322,211 95,742 480,008 58,691 449,261 12.9% 87.1%3.90% 6.30% 1.40% 59.80% 17.80% 10.90% 100%4.40% 7.00% 1.50% 67.10% 19.90% 100%
* For 2001, total excludes refiled claims.
Evaluated TDP Claim FilingsPre
Last Category 1995 1995 1996 1997 1998 1999 2000 2001 Total7 Mesothelioma 9,034 1,307 1,300 1,179 1,118 1,459 1,827 1,706 18,930 6 Lung Cancer (Two) 13,458 1,947 1,926 1,508 1,364 1,632 2,310 2,260 26,405 5 Lung Cancer (One) 2,375 297 236 219 125 206 268 224 3,950 4 Other Cancer 2,882 432 478 395 408 376 540 561 6,072
Cancer 27,749 3,983 3,940 3,301 3,015 3,673 4,945 4,751 55,357
3 Disabling Asbestosis 47,161 7,763 13,753 5,970 9,090 7,844 22,808 27,352 141,741 2 Nondisabling Asbestosis 50,342 11,977 21,701 7,915 11,497 11,301 18,194 24,183 157,110 1 Pleurals 45,843 5,858 6,524 4,211 3,833 6,129 8,187 10,473 91,058 0 Other 20,605 1,931 5,138 2,278 1,990 2,785 3,905 7,534 46,166
Non Malignancy 163,951 27,529 47,116 20,374 26,410 28,059 53,094 69,542 436,075
Total 191,700 31,512 51,056 23,675 29,425 31,732 58,039 74,293* 512,160
PreLast Category 1995 1995 1996 1997 1998 1999 2000 2001
7 Mesothelioma 5% 4% 3% 5% 4% 5% 3% 2% 4%6 Lung Cancer (Two) 7% 6% 4% 6% 5% 5% 4% 3% 5%5 Lung Cancer (One) 1% 1% 0% 1% 0% 1% 0% 0% 1%4 Other Cancer 2% 1% 1% 2% 1% 1% 1% 1% 1%
Cancer 14% 13% 8% 14% 10% 12% 9% 6% 11%
3 Disabling Asbestosis 25% 25% 27% 25% 31% 25% 39% 37% 28%2 Asbestosis 26% 38% 43% 33% 39% 36% 31% 33% 31%1 Pleurals 24% 19% 13% 18% 13% 19% 14% 14% 18%0 Other 11% 6% 10% 10% 7% 9% 7% 10% 9%
Non Malignancy 86% 87% 92% 86% 90% 88% 91% 94% 85%
Total 100% 100% 100% 100% 100% 100% 100% 100% 100%
* Note - Excludes 20,797 claims not valued during 2001
0
5000
10000
15000
20000
25000
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
Auto Manufacturing
Construction
Non-Asbestos ProductsManufacturing
Railroad
ShipyardConstruction/Repair
Textile
Utilities
Manville Filings By Selected Industry
Manville TrustNumber of Claims by Year Received and Industry
IndustryTraditional "Nicholson" Industries 1999 2000 2001* 99 to 00 00 to 01Primary & Sec. Asb. 249 578 736 132.1% 27.3%Insulators 582 609 1,162 4.6% 90.8%Railroad (Maint.) 1,547 5,369 8,700 247.1% 62.0%Utilities 1,496 2,203 3,686 47.2% 67.3%Chemical 3,177 4,972 8,786 56.5% 76.7%Marine 1,205 1,831 1,097 51.9% -40.1%Construction 5,181 7,746 12,367 49.5% 59.6%Auto Maintenance 358 2,618 6,208 631.9% 137.1%Shipyard 2,650 4,836 4,512 82.5% -6.7%WWII Shipyard 552 734 1,143 33.0% 55.7%
Subtotal 16,997 31,496 48,397 85.3% 53.7%New, Non-"Nicholson" IndustriesFood & Beverage 161 354 619 120.0% 75.1%Textiles 1,098 5,986 9,011 445.1% 50.5%Pulp & Paper 714 1,619 2,825 126.8% 74.5%Glass 145 310 544 113.6% 75.6%Iron, Steel and Nonferrous 5,789 8,935 16,590 54.3% 85.7%Durable (Metal) Goods 754 1,633 2,864 116.6% 75.4%All Others 2,759 4,745 8,000 72.0% 68.6%
Subtotal 11,420 23,582 40,453 106.5% 71.5%Grand Total 28,417 55,078 88,850 93.8% 61.3%
* Estimated, not through 11/30/01
Year Received by Trust Percent Change
ARPC 2001
Year of First Exposure by Industry
1944194619481950195219541956195819601962
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Filing Year
Yea
r o
f 1st
Exp
osu
re Shipyard
Non-Asbestos Mfg.
Textile
Automotible orMechanical
ARPC 2001
Year of First Exposure: Injury
194019421944194619481950195219541956195819601962
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
Filing Year
Ave
rag
e Y
ear
of 1
st
Exp
osu
re
Mesothelioma
Lung Cancer
Other Cancer
Asbestosis
Pleural Pleural
ARPC 2001
Manville TrustPayments by Disease and Period
Allocation of Claim $ Payments
Claims Trust Distribution Process by Year SettledSettled Disease Pre TDP 1995-2000 2000-02/10/02 Total TDP Grand Total
19,248 Mesothelioma 24% 25% 14% 21% 22%31,286 Lung Cancer 17% 18% 9% 15% 16%
6,680 Other Cancer 3% 2% 1% 1% 2%57,214 Subtotal 44% 44% 24% 37% 40%
295,835 Asbestosis 49% 49% 72% 57% 54%84,684 Pleurals 7% 7% 4% 6% 6%
48 Other 0% 0% 0% 0% 0%437,781 Total 100% 100% 100% 100% 100%
Payments $MM $1,053 $1,108 $576 $1,684 $2,737
TDP Claim Payments By Year
$0$50
$100$150$200$250$300$350
Pre1995
1995 1996 1997 1998 1999 2000 Jan'01-Feb'02
Mil
lio
ns
of
Do
llar
s
Millions of $
Manville TrustIndustries
Mining and Quarrying of Nonmetallic Minerals, Except FuelsConstruction Special Trade Contractors Phase 1Transportation Equipment
Building Construction General Contractors and OperativePaper and Allied ProductsPetroleum Refining and Related IndustriesRubber and Miscellaneous Plastics ProductsPrimary Metal IndustriesRailroad TransportationWater TransportationElectric, Gas, and Sanitary Services
Food and Kindred ProductsTextile Mill Products Phase 3Stone, Clay, Glass, and Concrete Products
Metal MiningOil and Gas ExtractionHeavy Construction Other Than Building ConstructionTobacco ProductsPrinting, Publishing, and Allied IndustriesFabricated Metal Products, Except Machinery and TransportationIndustrial and Commercial Machinery and Computer Equipment Phase 4Electronic and Other Electrical Equipment and ComponentsMeasuring, Analyzing, and Controlling InstrumentsMiscellaneous Manufacturing IndustriesLocal and Suburban Transit and Interurban Highway PassengerPipelines, Except Natural GasAutomotive Dealers and Gasoline Service StationsAutomotive Repair, Services and Parking
Phase 2
FUTURE CLAIMS FORECASTING BASED FUTURE CLAIMS FORECASTING BASED ON MEDICAL MODELS MAY BE ON MEDICAL MODELS MAY BE
MISLEADINGMISLEADINGHistory of the Manville Personal Injury Settlement Trust Future Claims Forecasting Employing Medical Models
Year of Forecast
1993
1995
1997
2000
2001
Forecast 2002-2049
48,600
266,000
333,500
441,000
1,420,000
% Error
108%
447%
25%
32%
222%
Manville TrustSummary of Forecasts Used in the Cash Flow Model
Meso: 100% of Nicholson; Lung: 23% of Nicholson
Not Appplicable Asbestosis: 1990 to 2001 Increasing Ratios Trended to 2049. Other Injuries: 2000-01 Ratios to Lung Cancer 2,684,719 8%
Nicholson 2000 Only Ratios to Lung Cancer (2000 Only) 1,615,386 13%Peto
2000 OnlyARPC "Traditional" Log-Log Claims-per-Year Regression 1,578,393 13%
Peto1998 To 2000
ARPC "Traditional" Log-Log Claims-per-Year Regression 1,417,851 17%
Nicholson1998 To 2000
Ratios to Lung Cancer (1998 To 2000 Totals) 1,289,759 17%
Peto1997 To 1999
ARPC "Traditional" Log-Log Claims-per-Year Regression 1,195,446 13%
Nicholson1997 To 1999
Ratios to Lung Cancer (1998 To 2000 Totals) 1,029,889 12%
Peto1996 To 1998
ARPC "Traditional" Log-Log Claims-per-Year Regression 747,726 7%
1,421,598Weighted Average
Mesothelioma and Lung Cancer
Calibration Period (Based on Diagnosis
Year)Other Cancers and Non-malignancies
Number of Claims (2001 to
2049)
Cash Flow Model
Selection Probability
ARPC 2001
Future Claim Projections By OthersFuture Claim Projections By Others Not Using Medical ModelsNot Using Medical Models
Milliman USA: pre
2000
2005
2010
2015
2020
2030
2035
-- 2000 -- 400,000
-- 2004 -- 270,000
-- 2009 -- 130,000
-- 2014 -- 110,000
-- 2019 -- 80,000
-- 2024 -- 30,000
-- 2034 -- 17,000
-- 2049 -- 12,000
1,049,000
Future Claim Projections By Others Future Claim Projections By Others Not Using Medical ModelsNot Using Medical Models
(continued)(continued)
pre
2000
2005
2010
2015
2020
2030
2035
-- 2000 -- 410,000
-- 2004 -- 225,000
-- 2009 -- 175,000
-- 2014 -- 110,000
-- 2019 -- 45,000
-- 2024 -- 20,000
-- 2034 -- 10,000
-- 2049 -- 5,000
Tillinghast – Towers Perrin:
~1,000,000
Milliman USA Estimates ofMilliman USA Estimates of Ultimate Loss and Expense Ultimate Loss and Expense
Due to U.S. Asbestos Exposure Due to U.S. Asbestos Exposure
Ultimate Paid of $275BUltimate Paid of $275B $50B Paid Through 2000$50B Paid Through 2000
$8B
$20B
$22B
$30B
$70B
$175B
U.S. Insurers
Uninsured Losses
Non-U.S. Insurers
Tillinghast – Towers Perrin Estimates ofTillinghast – Towers Perrin Estimates of Ultimate Loss and Expense Ultimate Loss and Expense
Due to U.S. Asbestos Exposure Due to U.S. Asbestos Exposure
Net Non-Net Non-U.S. U.S.
Insured Insured 31%31%
Net U.S. Net U.S. Insured Insured 30% *30% *
Retained Retained by by
Defendants Defendants 39%39%
$200 billion
Manville TrustPercentage Plan Trends
Eagle-Picher Manville Celotex UNRYear Pro-Rata Payment Pro-Rata Payment Pro-Rata Payment Pro-Rata Payment1988 1001989 1001990 1001991 *1992 *1993 * 17.21994 * 17.21995 10 18.61996 27.8 10 18.61997 27.8 10 12 18.61998 31.9 10 12 12.91999 31.9 10 12 12.92000 25.7 10 12 7.52001 15.5 5 10 7.5**
* For the years 1991 - 1994, there was essentially a stay on payments. ** UNR Trust is presently under a claim payment moratorium.
Claims Processing Facility 2001
EstimatedMarket Value
(Millions)Remaining Assets 5/31/2002
Equities $988 51%Fixed Income $748 39%Cash $184 10%Total Assets Remaining $1,920 100%
Claim Liabilities * # Claims Amt PaidResolved 448,723 $2.815 billion paidDisqualified 700Deactivated (Expired offer and denials) 43,264 33,779 of which were denied
Outstanding Dollar Offers 20,680Denials & Work-in-process 43,206Subtotal Active 42,676Total Claims (11/30/01) * 545,631 (Exclusive of unregistered claims)
*Excludes voided, co-defendant and distributor claims and cases liquidated by JM, but paid by the trust
NOTE: There was a voluntary claim filing moratorium from 9/1/01 to 10/15/01, and a partial claim filing moratorium from 1/29/02 to 5/13/02.
Remaining Assets and Claims Remaining Assets and Claims LiabilitiesLiabilities
Transition Table – Alleged to ‘Final’ Injury CategoryTransition Table – Alleged to ‘Final’ Injury Category
Transition Matrix 1998-2000 Filings as of 3/31/02 (excludes voids).
Based on Last Category
1st Alleged Cat 0 Cat 1 Cat 2 Cat 3 Cat 4 Cat 5 Cat 6 Cat 7 Total
Mesothelioma 2% 0% 0% 0% 0% 0% 1% 97% 100%
Lung Cancer 5% 0% 1% 1% 0% 9% 82% 0% 100%
Other Cancer 6% 1% 3% 10% 79% 0% 0% 0% 100%
Asbestosis 2% 3% 47% 47% 0% 0% 0% 0% 100%
Pleural 6% 80% 12% 3% 0% 0% 0% 0% 100%
CAT 0/None 32% 7% 46% 12% 3% 0% 0% 0% 100%
History of 1History of 1stst Exposures to JM Asbestos Products Exposures to JM Asbestos Products
Year Claim Filed
1ST Exposure 1997 1998 1999 2000 2001 Total
Pres 1976 99.3% 99.1% 97.9% 97.6% 96.4% 212,874
76 – 82 0.6% 0.7% 2.1% 2.2% 3.3% 4,716
Post 1982 0.1% 0.2% 0.0% 0.2% 0.3% 461
Totals 100.0% 100.0% 100.0% 100.0% 100.0% 218,051
23,510 29,171 31,058 56,662 72,473
Only about 20% of post 1975 exposures have been denied for any reason
History of Cumulative Exposure to JM Asbestos Products.History of Cumulative Exposure to JM Asbestos Products.
Duration of
Exposure (Yrs.) 1997 1998 1999 2000 2001 Total
1 1.0% 1.5% 2.0% 1.3% 0.9% 2,719
2 1.5% 2.1% 2.3% 2.1% 1.5% 4,076
3 1.6% 2.0% 2.0% 2.3% 1.8% 4,292
4 1.7% 2.0% 2.2% 2.2% 1.9% 4,369
5 or more 94.2% 92.4% 91.5% 92.1% 93.9% 201,666
Totals 100.0% 100.0% 100.0% 100.0% 100.0%
23,614 29,302 31,480 57,832 74,894 217,122
Less Than 5 5.8% 7.6% 8.5% 7.9% 6.1%
Only about 7% with exposure less than 5 years have been denied for any reason.
Year Production Imports Apparent Consumption1961 47,900.00 560,000.00 604,000.00 1962 48,300.00 613,000.00 659,000.00 1963 60,200.00 606,000.00 657,000.00 1964 91,700.00 670,000.00 738,000.00 1965 107,000.00 653,000.00 721,000.00 1966 114,000.00 659,000.00 731,000.00 1967 112,000.00 585,000.00 654,000.00 1968 109,000.00 669,000.00 741,000.00 1969 114,000.00 630,000.00 712,000.00 1970 114,000.00 589,000.00 665,000.00 1971 119,000.00 618,000.00 699,000.00 1972 120,000.00 668,000.00 747,000.00 1973 136,000.00 718,000.00 803,000.00 1974 103,000.00 695,000.00 768,000.00 1975 99,000.00 490,000.00 552,000.00 1976 105,000.00 596,000.00 659,000.00 1977 92,000.00 551,000.00 610,000.00 1978 93,000.00 570,000.00 619,000.00 1979 93,000.00 513,000.00 564,000.00 1980 80,000.00 327,000.00 356,000.00 1981 76,000.00 338,000.00 349,000.00 1982 64,000.00 242,000.00 247,000.00 1983 70,000.00 196,000.00 217,000.00 1984 57,000.00 210,000.00 226,000.00 1985 57,000.00 142,000.00 162,000.00 1986 51,000.00 108,000.00 120,000.00 1987 51,000.00 94,000.00 84,000.00 1988 18,000.00 85,000.00 71,000.00 1989 17,000.00 55,000.00 55,000.00 1990 41,000.00 41,000.00 1991 20,000.00 35,000.00 35,000.00 1992 16,000.00 32,000.00 33,000.00 1993 14,000.00 31,000.00 32,000.00 1994 10,000.00 26,000.00 27,000.00 1995 9,000.00 22,000.00 22,000.00 1996 10,000.00 22,000.00 22,000.00 1997 7,000.00 21,000.00 21,000.00 1998 6,000.00 16,000.00 16,000.00 1999 7,000 16,000.00 22,000.002000 5,000 15,000.00 19,000.002001 5,000 13,000.00 22,000.00
ASBESTOS STATISTICS
Results of Transitioning Selected Forecasts from Alleged to ’Final’ Category and, Based on Scheduled Values, Estimates of
Total Liability.
Transitioned Alleged Injuries to Category Projections
Maximum Mid-Range Minimum
Category 7 53,304 40,587 29,118
Category 6 97,739 49,145 30,191
Category 5 11,192 5,632 3,458
Category 4 25,099 13,164 8,760
Category 3 971,242 491,833 249,446
Category 2 997,926 504,427 256,487
Category 1 291,243 134,373 71,034
Category 0 75,471 38,004 20,570
Total 2,523,215 1,277,164 669,064
Total $ Allocated to Malignancies – Status Quo
22% 26% 32%
Total Liab $MM
Ignoring criteria differences, the redistribution of claims by Category to their nearest Level equivalents and resulting liability estimates
based on proposed Scheduled Values.
Transitioned Category to Level Projections
Assuming No Changes to Injury Criteria
Maximum Mid-Range Minimum
Level VIII 53,304 40,587 29,118
Level VII 97,739 49,145 30,191
Level VI 11,192 5,632 3,458
Level V 25,099 13,164 8,760
Level IV - - -
Level III 971,242 491,833 249,446
Level II 1,289,169 638,799 327,521
Level I - - -
Level O 75,471 38,004 20,570
Total 2,523,215 1,277,164 669,064
Total $ Allocated to Malignancies – Proposed Values
43% 50% 57%
Total Liab $MM $ 69,270 $ 39,653 $ 23,758
Liab. Chg. -29% -24% -18%
Applying the Proposed Injury Criteria to the CategorizationCategorization of Claims.
• Assessing the Financial impact of the proposed changes in injury criteria is significantly more uncertain than assessing the impact of the Scheduled Value changes.
• Based on previous filed claims, we can make some “guess-estimates” with respect to how some criteria changes my re-distribute claims within the Levels and revise the previous liability estimates.
The Asbestos Problem in a NutshellThe Asbestos Problem in a Nutshell
I. The claim problem: (a) disappearance of serious asbestosis; (b) huge pool of exposed people; and (c) screening industry.
II. The litigation problem: (a) mobility among the states; (b) mobility within the states; (c) consolidations; (d) mixed diseases.
III. The search for the solvent by-stander: (a) almost all traditional defendants in bankruptcy; (b) new industries (friction products); (c) new theories (premises); (d) new players (law firms); and (e) financial community reactions.
IV. Political environment: (a) trial lawyers split; (b) labor ambivalence; and (c) alliance between insurers and business.
Some Effects Of BankruptcySome Effects Of Bankruptcy
• Loss of earnings
• Uncertainty of outcome
• Delay
• Human factors
Section 524(g)Section 524(g)• Trust assumes present and future asbestos liabilities.• Trust funded in whole or part by securities of the debtor
and obligations of debtor to make future payments.• The trust will own – or can own -- a majority of the voting
stock of the debtor.• The trust will pay present and future asbestos claims.• Present and future claims will be treated the same.• Plan is approved by 75% or more of asbestos claimants.• There is a future claims representative.
Required Court FindingsRequired Court Findings
• The debtor has substantial future demands arising out of asbestos-related liabilities.
• The actual amount of liabilities cannot be determined.
• If no bankruptcy plan, all claims are in jeopardy.• 75% of present and future claimants voted in
favor of Plan.• Trust procedures insure similar treatment for
present and future claimants.