Asbestos firm's parent company aims to end bankruptcy

Published on Fri 8 Dec 2006

American giant Federal Mogul, the parent company of British-based asbestos manufacturer firm Turner and Newell, has submitted plans to come out of bankruptcy by March 2007, reports Hemscott.

Turner and Newell has been at the heart of controversy surrounding compensation for asbestos exposure, since it was revealed that GBP 70 million of its compensation fund was paid to administrators rather than victims. After years of legal wrangling the claimants settled for a fraction of the money they were entitled to while the fund administrators were paid in full out of the same money.

Federal Mogul had originally filed for Chapter 11 bankruptcy in an attempt to avoid paying liability for asbestos exposure, but now various settlements have been reached, the company hopes to end its bankrupt status.