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"Asbestos
Companies File Bankruptcy"
Southfield, Michigan, October 1, 2001... Federal-Mogul Corporation
(NYSE: FMO) today announced that to separate its asbestos
liabilities from its true operating potential, the company
and its United States subsidiaries have voluntarily filed
for financial restructuring under Chapter 11 of the U.S Bankruptcy
Code. In addition, Federal-Mogul subsidiaries in the United
Kingdom have filed jointly for Chapter 11 and Administration
under the U.K. Insolvency Act of 1986. No company subsidiaries
outside of the United States and the United Kingdom are included
in these filings.
The filings, made today in the U.S. Bankruptcy Court in Wilmington,
Delaware, and the High Court of Justice, Chancery Division,
London, England, enable Federal-Mogul to develop a plan to
resolve its asbestos liabilities. During these restructuring
proceedings, Federal-Mogul will continue business operations
without interruption, and with the full support of its major
customers and suppliers. Read
more at
http://www.federal-mogul.com/reorganization/en/index.html
"W.
R. Grace & Co. to Resolve Asbestos Claims"
W.
R. Grace & Co. (NYSE: GRA) today announced that the Company
has voluntarily filed for reorganization under Chapter 11
of the United States Bankruptcy Code in response to a sharply
increasing number of asbestos claims. This Chapter 11 filing
includes 60 of Grace's domestic entities. None of the Company's
foreign subsidiaries are included in this filing.
The filing, made today in the U.S. Bankruptcy Court in Wilmington,
Delaware, will enable the Company to continue to operate its
businesses in the usual manner under court protection from
its creditors and claimants, while using the Chapter 11 process
to develop and implement a plan for addressing the asbestos-related
claims against it. The Company intends to work closely with
asbestos claimants and other creditors to develop a plan of
reorganization that will both address valid asbestos claims
in a fair and consistent manner and establish a sound capital
structure for long-term growth and profitability. Read more
at
http://www.grace.com/html/reorg/pressrel.html
"USG
Files For Bankruptcy"
Since 1994, U.S. Gypsum has been named in more than 250,000
asbestos-related personal injury claims, and has paid more
than $450 million for litigation before insurance recoveries.
The subsidiary's personal injury costs have increased from
$30 million in 1997 to more than $160 million last year, and
were expected to exceed $275 million this fiscal year.
USG filed for bankruptcy protection in U.S. District Court
in Wilmington, Del., the state where USG is incorporated.
''Rather than dealing with these lawsuits in state civil courts,
we needed to get them all in one court and before one judge
and have a fair hearing,'' Foote said. ''There are true victims
of asbestos-related diseases. Moneys need to flow to them.
We will recognize and honor those claims.'' Read more at
http://www.suntimes.com/output/business/cst-fin-usg26.html
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