[net-gold] [Workers' Compensation] Asbestos Manufacturer Circor - Leslie Files for Bankruptcy
- From: "David P. Dillard" <jwne@xxxxxxxxxx>
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- Date: Tue, 13 Jul 2010 08:17:41 -0400 (EDT)
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Date: Tue, 13 Jul 2010 03:17:42 -0700 (PDT)
From: Jon L. Gelman <jon@xxxxxxxxxxx>
Reply-To: Net-Gold@xxxxxxxxxxxxxxx
To: net-gold@xxxxxxxxxxxxxxx
Subject: [Net-Gold] [Workers' Compensation] Asbestos Manufacturer Circor -
Leslie Files for Bankruptcy
.
[Workers' Compensation]
Asbestos Manufacturer Circor -
Leslie Files for Bankruptcy
Circor International, Inc. (NYSE: CIR)
today announced a major development
in its effort to stem mounting asbestos
litigation costs and resolve asbestos
liability claims at its Leslie Controls,
Inc. subsidiary.
Leslie today filed a pre-negotiated
plan of reorganization as a
voluntary petition under Chapter 11
of the U.S. Bankruptcy Code in U.S.
Bankruptcy Court for the District of
Delaware. Supported by a committee
of attorneys representing current
asbestos claimants and a proposed
independent representative of future
claimants, the plan is intended to
permanently resolve Leslie's asbestos
liability through the creation of
a trust pursuant to Section 524(g)
of the U.S. Bankruptcy Code. All
current and future asbestos claims
against Leslie would be channeled to
the trust for review and payment,
thus providing both Leslie and CIRCOR
with permanent court protection from
such claims.
Because we strongly believe that
exposure to Leslie's products has not
caused any asbestos-related illness,
our strategy has been to vigorously
defend these claims, said CIRCOR
Chairman and Chief Executive Officer
Bill Higgins. However, the cost
of this defense has exceeded the
profits generated by Leslie's
operations, and we have been
considering for some time a range
of strategic alternatives that would
enable us to permanently eliminate
this expense and risk. Resolving
Leslie's asbestos liability through
a pre-negotiated plan of reorganization
accomplishes that aim, while preserving
the value of a strong and viable
business.
Asbestos is a known cancer causing
agent and has been linked to
asbestosis and mesothelioma.
We believe that a 524(g) trust
that equitably resolves all pending
and future claims and provides
CIRCOR with permanent protection
from derivative claims is in the
best interest of all our stakeholders,
including CIRCOR's shareholders
and Leslie's customers, suppliers and
employees, Higgins continued.
Unencumbered by financial and legal
exposure to asbestos liability, Leslie
will be positioned to grow and
contribute to CIRCOR's profitability
and cash flow going forward.
Leslie intends to conduct business
as usual during the Chapter 11
process, which could be completed
in as little as 120 days., Today's
filing stays all pending and future
asbestos litigation against Leslie.
As a result, Leslie expects that
its cash from operations will be
sufficient to satisfy all of its
operating obligations during this
period. In addition, debtor-in-possession
financing has been arranged
for Leslie if needed.
Key terms of the pre-negotiated
plan are as follows:
Funding for the 524(g) trust will
consist of a $75 million contribution
by Leslie andCIRCOR together with a
contribution of proceeds from
Leslie’s remaining asbestos
insurance assets;
A provision that permanently protects
CIRCOR and its affiliates from
future derivative claims associated
with Leslie's asbestos liability;
and Leslie will remain a subsidiary
of CIRCOR during and after Chapter 11.
Click here to read more about asbestos
related disease and claims for
benefits. For over 3 decades the
Law Offices of Jon L. Gelman
1.973.696.7900
jon@xxxxxxxxxxx
have been representing injured workers
and their families who have suffered
asbestos related illnesses.
--
Posted By Jon L. Gelman
to Workers' Compensation
at 7/13/2010 06:17:00 AM
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