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Tuesday, June 8, 2010

Asbestos Manufacture Garlock Files for Bankruptcy Protection

Garlock Sealing Technologies LLC, a former manufacturer of asbestos products (The Anchor Packing Company), announced that it has taken a step toward a permanent resolution of asbestos-related personal injury claims against the company. Today, Garlock filed a voluntary petition in the U.S. Bankruptcy Court for the Western District of North Carolina in Charlotte to establish a trust to resolve all current and future asbestos claims against Garlock under Section 524(g) of the U.S. Bankruptcy Code.

Asbestos has been used for insulation properties. It is a known cancer causing agent and responsible for causing asbestosis, lung cancer and mesothelioma.

For the past 35 years Garlock has defended its liability in asbestos claims. Garlock has processed more than 900,000 asbestos claims to conclusion (including judgments, settlements and dismissals) and, together with its insurers, has paid over $1.4 billion in settlements and judgments and over $400 million in fees and expenses.

Garlock manufactured asbestos containing gaskets, pipe joints, values and other equipment.

Garlock will operate in the ordinary course under court protection from asbestos claimants while in the claims resolution process available under Chapter 11. All pending litigation against Garlock will be stayed as the company seeks to develop and implement a court-approved plan to permanently resolve all asbestos-related claims. Garlock plans to negotiate with representatives of asbestos claimants to establish a trust to pay all valid claims. Absent a negotiated resolution, Garlock intends to ask the court to determine the amount necessary to fund the trust.

Click here to read more about asbestos related disease and claims for benefits. For over 3 decades the Law Offices of Jon L. Gelman1.973.696.7900  have been representing injured workers and their families who have suffered asbestos related illnesses.