Garlock, EnPro Reach $480M Settlement for Asbestos Claims

EnPro Industries has agreed to establish a $480 million trust fund to settle all current and future asbestos claims against subsidiary Garlock Sealing Technologies, which filed for bankruptcy in 2010. The asbestos trust fund would begin with a $400 million cash contribution from EnPro within a year of the deal’s conclusion and an additional $80 million by the first anniversary. The settlement was reached with the court-appointed committee representing current claimants and legal representatives for future claimants, according to the announcement earlier this week. The deal still must be approved by the U.S. Bankruptcy Court, the U.S. District Court, and by 75 percent of the current claimants spread across the U.S. The bankruptcy court previously rejected the first reorganization plan in 2013. The committee representing current claimants also shot down a second plan in 2015, believing it fell far short of what was needed to compensate asbestos victims. According to a 2015 press release from the claimants’ committee, Garlock’s present and future asbestos liability was $1.26 billion. A U.S. District Court judge in 2014 estimated Garlock’s liability at $125 million. There are more than 100,000 active asbestos claims filed still pending against Garlock Industries. EnPro Expects Finalization in 2017 Steve Macadam, president and CEO of EnPro, said in a conference call Friday that he expects the deal will be finalized by all parties in the summer of...
Source: Asbestos and Mesothelioma News - Category: Environmental Health Authors: Tags: Asbestos Exposure & Bans Source Type: news