Page 17 - A Practical Guide to Chapter11 Bankruptcy Publication Notice

chapter 3: Special cases – asbestos exposure liability

Asbestos-related bankruptcy cases have been around for decades, impacting many companies, including
W.R. Grace, Owens Corning, Federal-Mogul Corporation, Johns-Manville, Pittsburgh Corning and Kaiser
special cases – Aluminum. Recent figures show that 117 companies with asbestos liabilities have filed for bankruptcy

protection. Today, many of the issues are still the same when it comes to providing notice in asbestos
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cases. Unlike a traditional bankruptcy, an asbestos-related bankruptcy tends to involve a notice program
asbestos that is similar to a class action notice campaign. The same can be true for certain types of mass tort-
related bankruptcy cases involving unknown or future claimants as a result of tort claims.

exposure Unknown Claimants/Creditors Class Action Style Program

One of the main challenges with providing Delivering appropriate notice to people
liability notice in bankruptcy cases involving asbestos who may have been exposed to asbestos is
substantially different than providing notice to
liability is the frequent lack of a list of known
potential asbestos claimants. Although some
claimants likely do not even know they have a
claimants may have filed suit against a debtor typical bankruptcy creditors. Potential asbestos
prior to commencement of the bankruptcy case, right to a claim or that an asbestos trust even
there are those “future claimants” who have exists. Also, the type and size of the potential
yet to file a lawsuit because their injuries have remedies are unique. Further, it may be difficult
not yet manifested. The latency period before to reach potential claimants who may have
an asbestos related disease manifests itself can suffered exposure years in the past and can
be 20 years or longer. In recognition of this, and be geographically dispersed. Because of these
to assist in the resolution of asbestos-related challenges, a comprehensive class action style
bankruptcies, asbestos trusts were created under reach and frequency measured media plan is the
Section 524(g) of Chapter 11 of the United States standard method of delivering notice in these
Bankruptcy Code. These trusts were created cases. Additionally, the content and formatting
for the sole purpose of compensating asbestos of the notice in these situations will have a more
claimants who are either currently ill or may “class action” like look, using plain language text
develop diseases in the future. Because these and an attention-grabbing headline and graphics,
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trusts are intended in-part to pay future claimants if appropriate.
who are unknown at the time the trust is created,
notice programs must be thoughtful, thorough
and targeted to potential claimants who are
completely unaware that the bankruptcy process
may affect them.

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