$800 Million Trust To Settle Asbestos Claims, says Cooney & Conway
CHICAGO, July 28, 2014 /PRNewswire-USNewswire/ -- RPM International and representatives of current and future claimants for deadly asbestos injuries have agreed in principle to resolve all asbestos claims related to Bondex International and other related entities. John D. Cooney, partner at the Cooney & Conway law firm in Chicago, and Chairman of the committee representing injured victims placed the estimated value of the settlement at $800 million.
Cooney explained that the settlement allows RPM to establish a trust under Section 524 (g) of the U.S. Bankruptcy code for the benefit of present and future asbestos plaintiffs. RPM will make payments to the Fund over a four year period, including both cash and RPM stock.
"While nothing can replace the thousands of workers who have been sickened or died as a result of their exposure to asbestos, this settlement represents a fair financial resolution for workers, their families, and RPM," Cooney stated.
An RPM subsidiary, Specialty Products Holding Corporation (SPHC) is Bondex's parent corporation. SPHC filed for bankruptcy protection in May 2010 mainly due to asbestos personal-injury liability related to asbestos products it manufactured. When inhaled, asbestos can cause lung disease and cancer. So far more than 100,000 people have filed claims against Bondex for asbestos injuries.
Cooney added that, "For more than four years claimants have waited to resolve their claims against Bondex for injuries they received for no other reason than that they worked hard during the course of their careers. This settlement ends the waiting period, and I am optimistic that the injured victims and their families will be swiftly compensated under this agreement."
The agreement is subject to the approval of the claimants and the U.S. Bankruptcy Court.
SOURCE Cooney & Conway
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