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Christy Refractories Files Bankruptcy, Citing Asbestos Lawsuits
By asbestoshub | November 10, 2008
The Christy Refractories Co. LLC filed a Chapter 11 bankruptcy petition in October 2008 in the bankruptcy court in St. Louis because of mounting asbestos lawsuits, according to a court filing. Christy Refractories makes heat-resistant products. The asbestos lawsuits cited as part of the problem aren’t a result of the company’s current operations. They are from asbestos products sold by a business that Christy acquired in 1995.
Although the old company was named in asbestos-related cases starting in the 1980s, the frequency increased about eight years ago.
Christy manager Frank O’Brien said that settlements average about $1 million per month and are accelerating. He estimated that more than 1,000 separate lawsuits are pending.
Claims of asbestos-related illnesses typically are dismissed without liability or settled, according to the company’s filing. The lawsuits include people who were exposed to the asbestos products in schools, steel mills and other commercial and industrial spaces.
A trust fund for the lawsuits will be established, and then the bankruptcy court will decide how much money should be put in the fund, Frank O’Brien said. He added that the trust fund will have at least $18 million.
As of Oct. 28, the company had about $18 million in remaining insurance coverage out of an original amount of $45 million, the filing said.
Frank O’Brien said he intends to keep the company in business while it undergoes reorganization, which could take up to a year. As of last week, the company had 23 employees.
Christy Refractories is owned by O’Brien Industrial Holdings LLC. O’Brien Industrial, which is run by Frank O’Brien, and its other subsidiaries are not in bankruptcy.
Only $18 million remaining to fund the trust with 1,000 asbestos lawsuits pending, at an average of $1 million each. All that liability acquired by a company who is guilty of nothing, from one that was guilty of much, including insufficient insurance coverage.
Topics: Claims, Law, Lawsuits |
