All Congoleum Asbestos Claims To Be Treated Same
New York, NY, Aug. 3, 2010--Congoleum's Chapter 11 plan, which became effective July 1, establishes a fund to pay an estimated 100,000-plus asbestos claimants, according to Law.com.
The website said that Congoleum's insurers -- whose refusal to cover the mounting volume of those claims triggered the bankruptcy -- are to contribute $253 million, and the reorganized Congoleum has pledged 50.1% of its equity.
All asbestos claimants -- even those who agreed to settle before the bankruptcy case was filed on December 31, 2003 -- are placed in the same class and their claims are to be processed through the plan trust and resolved in the same manner.
U.S. District Judge Joel Pisano in Trenton said the single-class placement is consistent with precedent.