In our last newsletter, we brought you up to date on the latest bankruptcy filings by asbestos companies. We pointed out that the filing of a bankruptcy petition has the effect of bringing to a halt the prosecution of your claim against the bankrupt defendant. In other words, we are prohibited by law from continuing your lawsuit against the company, for example, Owens Corning, or otherwise attempting to collect damages from that company until such time as a plan is put into place to compensate asbestos personal injury victims. 

Unfortunately, since we published our last newsletter, there have been two more bankruptcy filings. Armstrong World Industries filed for bankruptcy on December 12, 2000 and GAF Corporation filed for bankruptcy on January 5, 2001. Both of these companies were responsible for manufacturing asbestos containing insulation materials, including pipecovering, block and cement. These materials were used in construction of commercial and industrial buildings. Some of our readers may have entered into settlements with either or both of these companies prior to the filing of the bankruptcy petitions. 

Unfortunately, at this time we cannot predict how the bankruptcy filings will affect the payment of those settlements. No doubt there will be a reduction in the amount paid by these two companies. It is too soon to tell how much that reduction will be.

Don’t give up! We certainly will not give up on your behalf. Some of the bankruptcy claims may well prove to be a valuable source of recovery for you and your family over the next few years. We are tracking developments and will keep you informed.