Pittsburgh Corning Corp. Exits Asbestos-Related Bankruptcy
After more than 16 years from the date they filed for Chapter 11 bankruptcy protection, Pittsburgh Corning Corp. (PCC) has emerged from bankruptcy and established a $3.5 billion dollar Pittsburgh Corning Asbestos Personal Injury Trust to compensate asbestos victims. Pittsburgh Corning is one of the foremost global supplier of premium glass insulation. In January of this year, it was reported that the pending challenges and appeals against the company’s reorganization had been withdrawn. The emergence of PCC from bankruptcy marks the end of one of the longest Chapter 11 cases in history.
In 2000, Pittsburgh Corning entered Chapter 11 bankruptcy after defending over 200,000 claims from individuals who reported developing asbestosis, lung cancer and mesothelioma because of asbestos exposure after contact with Unibestos, an insulated pipe containing asbestos. The company’s asbestos-containing pipe insulation was manufactured between 1962 and 1972. According the company’s estimation, they expected at least another 200,000 cases to be filed against them related to asbestos at the time they filed bankruptcy.
In 2002, PPG Industries Inc. paid $2.7 billion to settle claims related to asbestos exposure.
As part of the reorganization plan, Pittsburgh Corning will establish a $3.5 billion trust fund to pay for present and future claims related to asbestos. The Pittsburgh Corning Asbestos Personal Injury Trust will also own the company. PPG and Corning Inc., the companies that funded Pittsburgh Corning, will contribute to the trust with the initial contribution reaching roughly $500 million, 2.8 million shares, and shares in Pittsburgh Corning Europe. Future cash payments will total another $350 million through 2023.
The announcement came yesterday that the reorganization plan is effective immediately.
If you were exposed to asbestos and developed mesothelioma, you may have the right to file a claim and seek compensation. Learn more by calling our firm.